Michelin closing tire manufacturing plant in Brazil

Sao Paulo, Brazil – Michelin Group has announced plans to cease operations at its manufacturing facility in Guarulhos, Sao Paulo, citing cheap imports as the reason behind the decision.

The factory in Guarulhos produces motorcycle and bicycle inner tubes, industrial tires and semi-finished products and employs 350 people.

Michelin expects to gradually close the plant by December and is currently negotiating with local unions.

In a 27 June statement, the French group said the move was a “result of an excess production capacity generated by the significant influx of products imported from Asia.”

Such tires, it said, often arrive at prices below the local production cost, strongly impacting the motorcycle and bicycle inner tube segment.

Michelin said market trends did not “indicate any prospect of change” and it had not been able to find an option to continue operations in the face Asian imports.

"The decision to close down activities was taken as a last resort," it noted.

According to its website, Michelin currently operates four industrial units in Brazil, including its truck & bus production unit in Campo Grande, Rio de Janeiro, where it employs over 4,000 people.

Other facilities include the Itatiaia industrial complex in Rio de Janeiro, responsible for the production of metal reinforcements as well as two motorcycle and bicycle tire sites in Guarulhos and Manaus, Amazonas. 

ERJ has contacted Michelin and local unions for further comment.