Michelin invests in Italian tyre manufacturing, but closes retreading and semi-finished product lines

At the same time as making plant closure announcements relating to the closure of its Ballymena truck tyre and Pneu Larent (Germany) truck retreading plants, Michelin announced that it is investing in its Italian tyre manufacturing operations.

Michelin reports that Michelin Italy currently manufactures over 10 per cent of European production and employs more than 4,000 people, 80 per cent of whom work on production sites. On 3 November 2011, the French tyre manufacturer announced that it has implemented a five-year strategic plan that will be supported by an investment of 180 million euros designed to significantly develop Italy’s car, van and truck tyre volumes by 2020 by reinforcing its Cuneo and Alessandria sites.

With more than 2,000 employees, the Cuneo plant is currently Michelin’s largest passenger car and light truck tyre production site and is also one of the largest semi-finished product production sites in Europe. Michelin is now aiming to increase its passenger car and light truck tyre production by 20 per cent by 2020, relating to current market forecasts, by continuing to move production upmarket to high and very-high performance tyres and by significantly improving competitiveness.

At Michelin’s Alessandria site (which has more than 800 employees), work will focus on the production of new truck tyres, with the goal of a 20 per cent increase in production by 2020. But Michelin will end retreading activity here in mid-2016.

Fossano to be closed in 2016

The Fossano semi-finished product is also scheduled to be closed in late 2016. Site production has dropped by 45 per cent since 2009 due to price pressure on these types of semi-finished products. In a context of overcapacity, Michelin says it needs to streamline its production facilities to maintain competitive production costs. The Fossano site, which employs 400 people, will therefore close in late 2016. Its production will be purchased from external suppliers or be taken over by the group’s other facilities in Europe.

And finally, in order to improve distribution performance, Michelin’s logistics network in Italy will be concentrate stock near the Cuneo and Alessandria sites. The Turin and Rome warehouses will therefore be modernised and will serve the whole of Italy. As a result, the Tribano warehouse, which employs 28 people, will be closed in late 2017.

Michelin’s reorganisation of its activities in Italy will affect 578 jobs by 2020.