Michelin to close plants in Colombia
ERJ staff report (TB)
Paris – Group Michelin will close two tire plants in Colombia in the coming months, reports Tire Business, citing a decade of "substantial losses" in Colombia and the plants' insufficient size.
At the same time, Michelin said it intends to step up the sales and distribution efforts in Colombia by developing the Michelin Columbiana sales force, which will grow to more than 60, and working with its existing "solid" distribution network.
Closing the Chusaca truck tire and Cali passenger tire plants in Colombia will affect about 460 workers, Michelin said.
The tire maker acquired the plants and associated sales and distribution assets in September 1998 with its purchase of Industrias Colombiana de Llantas S.A. (Icollantas), an independent company at that time which had been a BF Goodrich licensee for many years before that.
In accordance with Colombian law, Michelin said, a notice of intent to close has been filed with government authorities. The company added that it is offering personalized socio-economic support to the workers affected to help them find new jobs.
In respect to the project, Michelin will show $133m (€100m) in non-recurring expenses in the consolidated financial statements for the six months ending 30 June.