Michelin to Close Kansas Aircraft Tyre Retreading Plant
The tyre maker giveth, the tyre maker taketh away….On April 14, Michelin North America announced it will add retreading operations to its aircraft tyre factory in Norwood, North Carolina. The official press release, however, did not mention that the expansion of Norwood operations was taking place parallel to plans to end operations at its existing aircraft tyre retreading facility in Kansas City.
The Kansas City Star reports that consolidation of the 21-year old facility’s operations into the Norwood plant will begin during the second half of 2010 and be completed by the first half of 2011. The paper cites Michelin as saying the restructuring supports the company’s long-term emphasis on reducing costs. “Consolidation of aviation retread and new-tyre manufacturing takes advantage of significant economies of scale and existing synergies for the long term,” stated a Michelin statement quoted by the newspaper. “Norwood is closer to Michelin’s semi-finished plants, significantly shortening the supply chain.”
According to the Kansas City Star, Michelin has not provided details regarding severance for the 90 employees who will be affected.