29 Nov 2023
Closing production sites in Karlsruhe, Trier, Homburg, relocating customer support centre to Poland
Clermont-Ferrand, France - Michelin is to close its production sites in Karlsruhe and Trier as well as at its new truck tire and semi-finished product production in Homburg.
The Germany restructuring measures will impact 1,410 employees at the facilities, which are to cease industrial activities by the end of 2025, the tire maker announced 28 Nov.
Michelin said it will also relocate its customer contact centre for Germany, Austria and Switzerland from Karlsruhe to Poland by the end of 2025, affecting 122 jobs.
The French group linked to cutbacks to increasing imports of low-cost truck tires, as well as with high inflation and rising production costs in Germany.
According to Michelin, the market-share of budget tires from low-wage countries increased 11% over the last 10 years, at the expense of the premium and mid-price products.
The group added that, in the wake of recent global crises, the level of energy and other production costs in Germany meant the affected sites were no longer able to export competitively to other regions.
Interestingly, Michelin added that it is also pursuing a strategy of producing closer to the markets for its tires.
The strategy, it stated, "serves to improve customer service with a more robust, environmentally friendly and efficient logistics chain, resulting in a decline in exports."
Michelin's Homburg plant employs 843 people in the production of truck tires and semi-finished products - including 480 in truck tire retreading and related operations.
With 479 employees, the Karlsruhe plant is focused on the production of tires for small and medium-sized trucks and semi-finished products.
The Trier unit, meanwhile, employs 88 people in the production of bead cores for passenger car tires.
With the closures, Michelin’s industrial presence in Germany will be its car tire plant in Bad Kreuznach and truck tire retreading unit in Homburg.
Direct employment by the group in Germany – in industry, logistics, sales, marketing and admin – will fall to around 2,780 people.
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