Michelin to support job creation after Cholet plant closure

Cholet, France – Michelin and the French government have signed a revitalisation agreement aimed at supporting employment in the Cholet area following the planned closure of Michelin’s tire factory in the town.

The agreement was signed on 23 May and follows Michelin management’s decision in November last year to shut down the site, citing structural difficulties in the high-end passenger car and light truck tire market in Europe. (ERJ report)

According to the terms of the agreement, Michelin is committing €6.83 million over a three-year period to support the creation of at least 947 jobs – matching the number expected to be lost due to the plant closure.

The support will be targeted at industrial companies and service providers to industry with fewer than 500 employees, operating within the urban communities of Cholet Agglomération, Mauges Communauté, and the Loire-Layon-Aubance community of communes.

The geographical scope may be extended after the first year of the agreement.

The funding includes direct aid to businesses, with subsidies of €5,000 to €10,000 or low-interest loans of €10,000 to €12,000 per new job created.

Specific measures will be in place to encourage the hiring of former Michelin employees from the Cholet site.

Indirect support will also be available for organisations and projects that promote job creation, improve industrial skills, remove employment barriers, or assist with redeveloping the factory site.