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Dated: 15 January 2010

Michelin To Close Japanese Factory

 

Michelin have announced today that they plan to pull the plug on their factory in Ota, Japan. At the end of July 2010 the manufacture of passenger car and light truck tyres at the factory will be moved to other factories throughout North America, Asia and Europe.

The decision to close the factory came after previous measures, put in place back in 2007, failed to improve productivity and reduce production costs – which have been around double that of any other factory that produces tyres for the passenger car and light truck markets.

A spokesperson for the company, said that despite the closure of this factory, Michelin plan to “continue to develop its operations and expand its presence in Japan and the Asia Pacific region, notably through its research and development programs in Ota, its sales operations throughout the country and its activities at Nihon Michelin Tire Co Ltd. headquarters in Tokyo”.

Negotiations have now begun between the tyre manufacturer and representatives of the 380 employees at the Ota factory to come to an agreement regarding payouts. The Michelin spokesperson said that discussions are taking place now “in order to rapidly deploy measures to enable employees affected by the closing to find jobs, either within Michelin Group, in particular in Ota site in Japan, or elsewhere.”

 

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