Tyre maker Michelin to close two French plants by 2026

MICHELIN will close two factories in France by early 2026 affecting about 1,200 jobs, the French tyre maker said on Tuesday (Nov 5), the latest cutback in an European auto industry battling subdued demand and cheap Asian competition.

Labour unions had already alerted workers to the possible closure of the sites in Cholet and Vannes in western France, which make tyres for small vans and other tyre components.

Separately, German machine and car parts maker Schaeffler announced plans on Tuesday to lay off 4,700 people in Europe after its operating profit almost halved in the third quarter.

Michelin said the market share of entry-level car, light truck and heavy duty tyres had increased significantly over the last decade, hitting premium categories, and leading to overcapacity at some Michelin plants.

The company said it would record a provision of approximately 330 million euros (S$473.9 million) in non-recurring expenses in its consolidated financial statements as of Dec 31.

Michelin announced last year the closure of two German heavy-duty tyre sites and last month lowered its annual profit forecast due to a more marked slowdown than expected in the auto market in the third quarter. REUTERS