Reasons Behind Nigeria Pullout – Michelin

Michelin has given more details of their decision to quit tyre production in Nigeria. At a press briefing the Corporate Affairs manager for Michelin Nigeria Limited, Ojo-Osagie, passed on details of the factors contributing to the decision and the measures the company plans to undertake in the coming months.

High production costs caused by the absence of a reliable public power supply has been listed as the underlying reason for the closure of Michelin’s Port Harcourt factory. Mr. Osagie was quick to quash rumours that the decision was in any way connected to Nigeria’s political situation, and added that the cessation of production will not have any affect on the company’s plantation and sales operations within Nigeria.

Osagie said that, following a meeting between Michelin and the region’s state government, a committee has been formed to work out how to look after the affected workers’ best interests while implementing the closure, and promised that employees will be compensated according to their entitlements. The short time working measures already in place will continue until the end of May, he added.