Michelin to shed 700 jobs in France, sell Algeria operation
Tyre-maker Michelin is to shed 700 jobs at one of its French factories and sell its Algerian operation. The company, which says it will invest 800 million euros in France, is stopping production of heavy goods vehicle tyres.
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Work stopped at 4.30am at the Michelin factory at Joué-lès-Tours in west France, after workers read about the plan in the press.
The company, which had planned to make the announcement on Wednesday, confirmed the news later in the day, leaving unions fuming and threatening to blockade the plant, which provides parts to other factories across Europe.
Two-hundred employees will be kept at Joué-lès-Tours, 250 will be entitled to take early retirement and the 480 others will be offered jobs at Michelin’s other factories in France or helped to find work elsewhere, the company said.
European demand for heavy goods vehicle tyres has fallen 25 per cent, according to Michelin, and it plans to stop producing them at Joué-lès-Tours in 2015, doubliing output at La Roche-sur-Yon, also in western France, and creating 170 jobs there.
US giant Goodyear intends to close its plant at Amiens for the same reason.
Michelin says it will invest “about 800 million euros in France between 2013 and 2019” so as to expand production of tyres for agricultural and passenger vehicles.
The company also announced that it will sell its operation in Algeria to the country’s biggest private company, Cevital, starting with a 67 per cent share and going on to 100 per cent.
Cevital has promised to offer a job to all 600 Michelin employees in Algeria, the French company says.
The announcement is more grim news for France, which has seen a wave of manufacturing job losses and factory closures this year.
Ministers will “work together so that things go as well as possible”, Economy Minister Pierre Moscovici said on Monday.
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