Michelin to close Budapest truck tyre factory

In response to volatility in the European truck tyre market, a segment that remains 23 per cent below its 2007 historic peak, this morning Michelin announced the planned closure of its truck tyre plant in Budapest, Hungary. Alongside such market factors, Michelin says the facility, acquired as part of its purchase of Taurus Rubber in 1996, is located in an urban area and cannot be further expanded; any other measures to improve its competitiveness would require what Michelin considers an “excessive” upgrade with new equipment. The closure will see the loss of 512 jobs.

As of mid-2015, production of Taurus, Riken and Kormoran brand tyres will end in the Budapest plant and capacity will be mainly relocated to Michelin factories in Olsztyn (Poland), Zalau (Romania), Karlsruhe and Homburg (Germany). Michelin will continue to manufacture high performance passenger car tyres in Hungary at its Nyíregyháza plant and will also maintain the operations of its logistics centre in Vác, which serves countries in Central and Southern Europe, and its strategic raw materials marketing unit in Tuzsér. In addition, Michelin will continue to manage its entry-level car tyre operations from Budapest, while maintaining all of its Hungarian sales operations.