With the European truck tyre market volatile and 23% down on its historic peak in 2007, Michelin said it would close its production plant in Budapest because it cannot be expanded and improving its competitiveness would require excessive upgrading with new equipment.
Production of tyres sold under the Taurus, Riken and Kormoran brands will end in mid-2015, with the loss of 512 jobs.
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Michelin said it would help find workers jobs and would also work with local authorities on job creation and possible site redevelopment.
Production will move to factories in Olsztyn (Poland), Zalau (Romania), Karlsruhe and Homburg (Germany).
Michelin will retain Hungarian factories in Nyíregyháza, Vác and Tuzsér.
It will book a EUR39m (US$54.2m) charge for the closure in its first half 2014 accounts.
