Michelin is to close its plant at La Roche-sur-Yon in France by the end of 2020, with the loss of 619 jobs.
The tyre manufacturer broke the news to staff at a meeting this morning (10 October), although it insists each employee will have the opportunity to stay in the company in France.
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“The commitment of the employees, the quality of the social dialogue and the efforts of the Group proved insufficient to complete the ‘Skipper’ project, aimed at reinforcing the activity of the La Roche-sur-Yon site,” said a Michelin statement.
“This project, which was supported by a EUR70m (US$77m) investment, did not produce the expected results due to the structural transformation of the premium truck tyre market, both in Europe and overseas: a European market with no growth expected, intense competition, with an entry level brand segment in constant increase.
“The priority of the Group’s management is to support each of the 619 employees to build with them their future career. Michelin is committed to ensuring each person, according to his or her situation and projects, has a choice for the future.”
Michelin adds it will negotiate as soon as possible with unions for an agreement concerning a support scheme for employees, favouring what it terms “voluntary mobility” in order to avoid forced departures.
Retirements planned in the coming years and recruitment needs make it possible to offer each employee several positions in the Group’s other sites in France.
Among the 1,338 salaried staff at Michelin’s Cholet plant, 74 people from the workshop supplying rubber mixes to La Roche-sur-Yon site are also concerned by the closure.
In addition to the early retirement measures, each employee affected in Cholet will be offered a new position on the site. There will be no impact for employees of the other French factories.
Beyond its legal obligations in terms of revitalisation, Michelin is committed to setting up in the coming weeks an initiative to transform the site, allowing for the development of sustainable activities, which will serve the interests of the town, the department (a local administrative division) and the region.
To finance the operation, Michelin will record a provision of around EUR120m in non-recurring expenses in its consolidated financial statements as of 31 December, 2019.
