11 June 2013 15:44 [Source: ICIS news]
LONDON (ICIS)--Michelin will end truck tyre production at its plant in Algeria in late 2013, according to a statement by the France-based international tyre major on Tuesday.
Michelin said that the plant was too small to be competitive and its urban location prevented future expansion.
Michelin's Algerian truck tyre business will be sold to Cevital, Algeria’s largest privately-owned manufacturing company, Michelin added.
Cevital committed to offering the 600 employees affected by the closure in Algiers jobs at its other businesses, Michelin said.
Michelin also said that it will end truck tyre production at Joue-les-Tours, near Tours, France, in the first half of 2015 to focus its European truck tyre production at La Roche-sur-Yon, south of Nantes. However, the Joue-les-Tours plant will continue to produce metal fabrics and the rubber bladders.
Michelin said it was responding to "extremely competitive" conditions on the European truck tyre market, "with demand in the region running 25% below 2007 levels."
Earlier this year, US-based Goodyear said it would close its tyre plant at Amiens, north of Paris.
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