New Tyre Production Ceases At Michelin’s Stoke Factory

Michelin has announced that it will be ceasing production of car tyres, van tyres and rubber mixing production at its factory in Stoke-on-Trent in the UK during the second half of 2001. Production of truck retreads, steel cord and moulds will continue and the site will focus more on commercial and support services for the UK market. 950 jobs out of the total of 2,350 on site will be lost.

The decision has been taken as part of Michelin’s rationalisation of its European production operation, announced a year ago in an effort to improve profitability. 60% of Michelin’s international production is based in Europe and that continent represents only around one third of the world market, so competitiveness is vital. Future output will be concentrated on a smaller number of sites with greater capacities.

The Stoke factory is large in area – more than 30 hectares – but tyre production is small at around two million tyres annually. Plants producing eight million tyres and more a year are becoming increasingly common nowadays. It is ironic that productivity at Stoke has improved over recent years, but it was felt that urgent action had to be taken to lower manufacturing costs in order to ensure a viable future for Michelin’s UK operations.

Manager of the Stoke site, Jim Rickard, is today making a series of presentations to employees. He described it as “Bad news”, adding: “It’s a sad day for Michelin and a sad day for Stoke-on-Trent because it signals the end of what will be nearly 74 years of Michelin tyre-making in Stoke.” He went on to say that the company will do all it can to support the employees, including a financial package above the statutory requirements.