Michelin ceases tire manufacturing at two facilities due to decreased consumer interest.
Tire giant Michelin has temporarily halted operations at two of its facilities in France due to decreased demand. These plants include one that manufactures specialized agricultural tires in the northeast and another that produces construction tires in the country's center, the company reported.
The factories producing automobile tires continue to run, albeit facing similar demand challenges. Michelin is still collaborating with unions to find remedies.
The predicament has been linked to a "global economic downturn, notably in the automobile sector, where vehicle sales by manufacturers have seen a drop of 20 to 25 percent," according to Michelin CEO Florent Menegaux in an interview with "Le Parisien". "Consequently, we're impacted and compelled to make adjustments."
In 2020, Michelin announced a round of layoffs. Additionally, a factory in western France and another in southern Germany were shut down last year.
Other tire categories, such as bicycle tires, haven't been affected by the halt in production at these facilities. Nevertheless, Michelin is exploring alternative production options for these specialized and construction tires from its other operational sites.
