ERJ staff report (DS)
Paris -- Michelin plans to invest more than 200 million euros over the next five years to upgrade its production facilities in Italy. Part of this will involve the end of tyre manufacture at its plant in Stura, Turin.
On the investment side, Michelin said it will significantly increase production capacity at the car tyre plant in Cuneo, near the French Alps, to make it Europe's largest premium passenger car tyre production facility.
Meanwhile, the company said tyre production will end at Stura by the end of next year (2009). The unit will continue to manufacture semi-finished products and operate its logistics center, following the transfer of the Vercelli warehouse. Michelin said it will implement a job-creation programme familiar to other locations where the company has closed factories. The Michelin Group has pledged to offer a new position to each employee concerned by these measures and to create the same number of jobs in the local area as will be eliminated.
With operations in Italy since 1907, Michelin today has more than 5,000 employees at four industrial sites in Alessandria, Cuneo, Fossano and Turin. Michelin said the modernisation and reorganisation plan will enable it to strengthen its industrial position in Italy.
Michelin did not say how much the job severance package wil cost, but said it would be revealed at a later date. Michelin will release its third quarter figures tomorrow
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Press release from Michelin