Michelin truck tyre plant closure announcement anticipated
According to Deutsche Bank Markets Research, Michelin is expected to announce the closure of its Tours, France truck tyre factory tomorrow. Research analyst Gaetan Toulemonde reports that closure of the 1.2 million tyre per annum capacity plant would be a product of weak volumes in Europe; while the European passenger car tyre market is now six per cent higher than 2007 pre-crisis levels, at 404 million tyres, over the same period the European truck tyre market has dropped eight per cent to 20 million tyres. Continental and Pirelli have already reduced a total of 2 million truck tyres from their European capacity in the last five years, and Michelin’s European truck tyre operations currently only operate at 60 per cent capacity.
Michelin operates seven truck tyre plants in Europe and has a total annual capacity of 10 million tyres. A restructure such as closing the Tours facility may cost 70 million euros but lead to annual savings of 35 million euros, Toulemonde adds.
Related news:
Comments