Michelin links tire plant closures to targeted growth plan

Clermont-Ferrand, France – Michelin CFO Yves Chapot has linked a decision to close truck tire production units in Poland and China to a wider plan to better align capacity with ‘targeted markets.’

‘Footprint optimisation’ started last year with the announced closures of the group’s passenger car tire plant in the US (ERJ report) and two production facilities in Germany (ERJ report).

“We have completed the plan in 2024 with the announcement of the closure of truck tire activity in Olsztyn, Poland and Shenyang, China, as well as associated semi-finished components activities in Shanghai,” said Chapot.

In parallel, the group is investing in capacities for passenger car tire production, the Michelin finance chief continued on an online discussion of the group’s first quarter results.

Last year, the French group invested in passenger car tire capacity expansions at its facilities in: Shanghai, China; Bridgewater, Canada and Leon, Mexico, Chapot said in the 24 April webcast.

At Shenyang and Olsztyn, Michelin is now increasing capacity for passenger car tires along with decreasing truck tire capacity, Chapot also pointed out.

This, he said, means that the two truck tire plant closures are done “with practically no social effects” as Michelin will be transferring employees from one activity to another.

Furthermore, Michelin is increasing its capacity for rubber-track production in Junction City, Kansas, for very high-powered tractors. (ERJ report)

These projects, Chapot went on to say, will see an overall 7% reduction in the production of PC tires smaller than 18” and a 15% reduction in the group’s truck tire capacity.

The projects are expected to improve Michelin’s ‘local-to-local’ production strategy and improve ‘value-driven’ production mix at the group’s factories.