Michelin NA to Close Opelika, Alabama Factory

On April 13 Michelin North America announced plans to close its BFGoodrich passenger and light truck tyre factory in Opelika, Alabama. The company says this ‘restructuring plan’, which will lead to the plant ceasing production by October 31, is being pursued in response to an unprecedented drop in market demand.

North American consumers are, Michelin adds, driving fewer miles, purchasing fewer vehicles and delaying tyre purchases. For this reason the company has a significant overcapacity in these markets – and Michelin says it doesn’t expect this overcapacity to ‘rebound in the near term’. This appraisal of the current market situation is in line with that of the Rubber Manufacturers Association, which expects North American tyre sales volume to decline this year for the second year in a row.

“Business decisions that directly impact the lives of our employees are extraordinarily difficult,” said Dick Wilkerson, chairman and president of Michelin North America. “This action is necessary, however, for the long-term health and competitiveness of Michelin North America. In this crisis, there is no more business as usual.”

The 153,000 square metre Opelika facility currently employs approximately 1,000 wage and salaried workers and produces BFGoodrich and Uniroyal brand tyres. Michelin says it will consolidate production at the BFGoodrich factories in Tuscaloosa, Alabama and Fort Wayne, Indiana.

In an official press statement regarding the closure, Michelin states that “the decision ensures the company will be better able to fully utilise the capacity of its remaining Michelin and BFGoodrich facilities in North America, accelerating work already under way to reduce costs and improve competitiveness.” The company adds it will work with appropriate government agencies, communities, and the United Steel Workers union to help make the transition for all affected employees ‘as smooth as possible’. A Michelin Development Program will be initiated to assist in the creation of new jobs from diverse industries within the community.