After a decade of substantial annual losses in Colombia, which repeated cash injections have failed to stem, Michelin has decided to axe tyre making at local subsidiary Icollantas which, it said, has never been competitive.
Production at the Chusaca truck tyre plant, which employs around 220 people, and at Cali, which makes car tyres with a workforce of around 240, will be shut down this summer. Michelin claimed it would help the 460 doomed workers help to find a new job.
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“The sale and distribution of Michelin Group brands will be stepped up in Colombia by developing the existing sales force, which will comprise more than 60 people,” the automaker said.
The tyremaker will book a EUR101m charge for the closure.
