Michelin has announced a reorganisation plan of its activities in Germany, in the UK and in Italy that will lead to cut about 1,600 jobs by 2018. This reorganisation is accompanied by an investment of €265 million to modernise production facilities and the logistics network in these countries.
In the framework of the reorganisation, the group will close three sites: Ballymena (860 employees) in the UK, by mid-2018. ; Oranienburg (160 empoyees) in Germany, by the end of 2016 – with a transfer of production to the French site of Avallon (Yonne) – and Fossano (400 employees), in Italy. The site of Alessandria (more than 800 employees, Italy) will cease its retread activity in mid-2016 due to a sharp deterioration in the retread market. The group wants also to modernise its logistic in Italy that will lead to reorganise its warehouses network (with 28 job cuts).
However, in the UK, the investment at Stoke and Dundee will result in the creation of 110 jobs. "The competitive environment and the economic crisis of the past few years have lastingly affected the European tires market and, in particular, the market for new and retread truck tires, explains the group. To maintain its position as leading manufacturer and continue to develop in Europe, Michelin has decided to consolidate its positioning on high added-value production". In its press release, the management highlights measures to assist employee concerned in finding alternative employment or to take part to a return to work support programme. Michelin in Europe employs over 65,000 people and has 40 production sites representing 40% of the Group's activity.