The closure of the French site comes after Michelin announced in September plans to close down a plant in Bamburg, Germany
French tyre maker Michelin said on Thursday that it would close down a site in the town of La Roche-sur-Yon,France by the end of 2020. This move will lead to a loss of 619 jobs. Michelin in press release said, “it will give each employee an opportunity to stay in the company in France and will also launch an ambitious initiative to transform the site.
“The remarkable commitment of the employees, the quality of the social dialogue and the efforts of the Group proved insufficient to complete the “Skipper” project, which was aimed at reinforcing the activity of the La Rochesur-Yon site. This project, which was supported by a 70 million-euro investment, did not produce the expected results due to the structural transformation of the premium truck tire market, both in Europe and overseas: a European market with no growth expected, intense competition, with an entry-level brand segment in constant increase.” Michelin said.
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The company further added, “The priority of the Group’s management is to support each of the 619 employees to build with them their future career. Michelin is committed to ensuring that each person, according to his or her situation and projects, has a choice for the future.”
Michelin will be setting up a new initiative to transform the site, allowing for the development of sustainable activities, which will serve the interest of the town. The brand will propose to the trade union and all public-private stakeholders in the region to take part in this project. To finance this operation, the Michelin Group will record a provision of approximately €120 million in nonrecurring expenses in its consolidated financial statements as of December 31, 2019.