Michelin pauses production at Stoke-on-Trent tyre retreading plant

Michelin is pausing some of its retreaded tyre production for a week in October and over the Christmas period. According to the company, Michelin is “adjusting production within existing flexibility agreements due to volatile trading conditions”. However, there is no question of whether the action is related to a potential closure of the operation. Rather, company representatives were explicit: “there is no plan to close the Stoke plant”.

In answer to Tyres & Accessories’ questions, Michelin representatives explained that the measures are related to wider factors: “The Group controls its inventory by adjusting output on a monthly basis, and the pauses at Michelin Stoke are part of this process”.

With two “pauses” specified, Michelin’s statement further explained that “Flexibility and reactivity are important mechanisms for the Stoke plant to help maximise competitiveness while minimising the impact on people.”

High market inventory levels are given as the reason for the alteration to production: “Across the industry, predicted rises in inflation have led to distributors building up stocks to guard against price increases. This build-up has yet to move through the marketplace.”