Michelin Closes Mexico Tread Pressing Plant

Overcapacity in Michelin’s North American retreading operations led the company to close its truck tread pressing plant in Querétaro, Mexico on July 7. Production from the Michelin Retread Technologies (MRT) plant, which employs approximately 80 people, will be relocated to the company’s retreading facility in the United States. Michelin states that the decision to stop production of this particular product line has no impact on the continuing operations of its passenger car and light truck tyre plant in Querétaro.

In its announcement of the closure, Michelin commented that the commercial truck tyre retread market has not achieved the growth anticipated by North American industry forecasts, and overcapacity has thus resulted. Thus, Michelin is restructuring its North American retreading operations to “respond to market demand”. While Michelin admits the Querétaro plant’s operational performance has been excellent, financial and market factors make this decision necessary to maintain the company’s long-term health and competitiveness. Michelin reports it is working with employees to help them make “as smooth a transition” as possible.