Michelin closing two plants in France with loss of over 1,200 jobs

Clermont-Ferrand, France - Michelin Group is to axe two production facilities in France, due to the ‘profound transformation’ of passenger-car and truck tire markets in Europe over the past decade.

In a statement, the French group said it was closing its passenger car and light truck tire plant in Cholet and metal reinforcement products unit in Vannes by early 2026 “at the latest.”

The decision will impact 1,254 employees, to which Michelin said it would provide support, according to its 5 Nov announcement.

Explaining the closures, Michelin said the European passenger/van and truck tire markets had been “moving strongly toward low-cost tires mainly from Asia,” over the recent years.

In the space of 10 years, it said, the market-share of entry-level passenger car & van and truck tires increased by 9 and 11 points respectively, to the detriment of premium product sales.

“This situation has led to structural production overcapacity in some Michelin passenger car-van and truck tire plants in Europe,” it added.

As it stands, Michelin said it had voluntarily stopped production at both sites until 11 Nov to allow management and unions to offer collective and individual discussions to employees.

The group expects to record a provision of €330 million in non-recurring charges linked to the closures in its consolidated accounts as of 31 Dec.

More to follow...