Michelin investing in Poland, China car tyre production

Michelin recently confirmed plans to end truck tyre production at its Olsztyn factory in Poland and in Shenyang, China, as well as the shutdown of a semi-finished products metal reinforcement operation in Shanghai, China. Parallel to these planned closures, the company intends to invest in passenger car tyre capacities. In addition to expanding car tyre production at its Shanghai plant, Michelin says it will grow passenger car tyre capacities in both Olsztyn and Shenyang.

According to Yves Chapot, the company’s general manager, this means that closure of truck tyre activities in Poland and China will take place with “practically no social effect,” as Michelin is simply transferring its employees “from one activity to another.”

Almost £200 million for PCR in Poland

Although truck tyre production will transfer from Olsztyn to Michelin sites in Romania, Italy and Spain, the 430 workers who make these products will have the opportunity to remain employed within the facility. In local newspaper Gazeta Olsztyńska, Piotr Staszałek, Michelin’s press officer & PR manager for Poland, confirms the tyre maker is investing a billion zlotys (£198 million) to modernise the Olstyn plant and give it a greater focus on the consumer tyre segment.

In a statement published towards the end of April, Staszałek counters “false reports” and shares Michelin Polska’s assurance that it does not plan any significant layoffs in Olstyn related to the truck tyre plant’s closure by the end of December 2024.

Additional PCR capacity in China

As for Shenyang, in mid-2023 Michelin announced a RMB 200 million (£22 million) investment in the site that will expand annual car tyre production capacity by 1.3 million tyres. New equipment will be installed in the former truck tyre manufacturing facility; once the project is complete, Michelin will have the capacity to produce 17.3 million car tyres every year in Shenyang.

On 20 November 2023, Michelin held a groundbreaking ceremony at its Shanghai site to mark the start of work expanding capacity for high-performance, high-value radial passenger tyres. The project is expected to be completed by the end of 2026 and will increase the plant’s annual production capacity by 1 million units, 9.5 million tyres a year.