Michelin to cease activities at Bamberg tire factory in Germany

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Closure of the Michelin tire factory in Bamberg, Germany, will leave the company’s 858 employees based there facing redundancy. The decision comes after a consultation phase with the works council in accordance with German legislation.

 The facility, which opened in 1971, mainly manufactures 16in passenger car tires – a market segment that is characterized by both a sharp decline in global demand and extremely strong competition from Asian manufacturers. 

Since 2013, Michelin Group has invested €60m (US$65.57m) to address this market development and gradually adapt the site’s production. However, these efforts, combined with the commitment of the teams, can no longer compensate for the structural transformation of the passenger car tire market in Europe. No economically viable industrial alternative is possible in this context, according to the company. 

 The priority of Michelin is now to provide employees with the most appropriate support possible by implementing a complete and personalized support program, including, in particular, the use of a transfer company, assistance for retirement, and internal and external mobility. Negotiations with labor organizations will take place to define how these measures will be put in place.

Michelin is committed to setting up an innovative revitalization program to transform the site. This project, developed in partnership with local public and economic stakeholders, will have to take into account, and be part of the region’s development priorities.

To finance the operation, Michelin Group will record a provision of approximately €167m (US$182.52m) in non-recurring expenses in its consolidated financial statements as of December 31, 2019.

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Rachel's career in journalism began around five years ago when she started working for UKi Media & Events, having recently graduated from Coventry University where she studied the subject. Her favourite aspect of the job is interviewing industry experts, including researchers, scientists, engineers and technicians, and learning more about the ground-breaking technologies and innovations that are shaping the future of the automotive and tire industries.

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