Michelin has announced it is closing its La Roche-sur-Yon truck tire production site in France.
Unfortunately recent efforts of the group to reinforce activities at the La Roche-sur-Yon site proved insufficient. It is believed that this project, which was supported by a €70m (US$77m) investment, did not produce the expected results due to the structural transformation of the premium truck tire market, both in Europe and overseas. In the European market especially, no growth is forecast and competition is intense. Furthermore, the entry-level brand segment is constantly growing. As a result, the tire manufacturer made the executive decision to close the plant.
Michelin’s priority is to support each of the 619 employees going forward. As part of this, it will begin as soon as possible negotiations about a support scheme for employees, favoring voluntary redundancy in order to avoid forced departures. This approach will give individuals the time and latitude necessary for in-depth co-construction of solutions adapted to the needs of employees.
As part of this, in addition to an early retirement program, Michelin will offer internal and external mobility schemes.
Internally it will offer employees the opportunity to stay working for the company. The numerous retirements planned in the coming years, and the recruitment needs, make it possible to offer each employee a position at the group’s other sites in France.
Among the 1,338 salaried employees at the Cholet plant, 74 people from the workshop supplying rubber mixes to the La Roche-sur-Yon site will also be affected by the closure. In addition to the early retirement measures, each employee will be offered a new position on the site.
Beyond its legal obligations in terms of revitalization, Michelin is committed to setting up in the coming weeks an innovative initiative to transform the site, allowing for the development of sustainable activities, which will serve the interests of the town, the department (a local administrative division), and the region.
To finance this operation, Michelin Group will record a provision of approximately €120m (US$132m) in non-recurring expenses in its consolidated financial statements as of December 31, 2019.
