Michelin closes plant in Brazil

Michelin, which recently announced the closure of its plant in Mexico, will also stop production at its facility in Brazil, located in the city of Guarulhos (São Paulo state) and producing inner tubes for motorcycle and bicycle tires, as well as tires for special equipment and semi-finished products for other company sites. The plant was acquired in 2016 along with the company Levorin, founded in 1943 and operating in Guarulhos since the early 1960s, and the plan is to close the enterprise by the end of this year.

As noted by Michelin, the decision to close the plant was made due to the "lack of economic feasibility" in the face of an influx of imported products, mainly from Asia, and an overcapacity of production facilities. According to the company, imported goods are often offered at a price that is lower than the cost of products of Brazilian production, and the segment of inner tubes for motorcycles and bicycles was particularly affected.

350 people will lose their jobs, and Michelin reports that they have already begun negotiations with the union regarding financial support for employees. The company also emphasizes that they considered various options for preserving production, but none of them were deemed feasible. "The decision to close was made as a last resort," the Michelin statement reads.

Michelin South America CEO Hervé Le Gavrian stressed that "the company's decision is not related to the effectiveness of the local team" and added that the manufacturer guarantees the fulfillment of all obligations to customers.

Michelin will continue to produce products at its three other plants in Brazil, located in Manaus (Amazonas), Resende (Rio de Janeiro) and Campo Grande (Mato Grosso do Sul), as well as maintain offices in the states of Bahia, Espírito Santo, Minas Gerais and São Paulo. In total, 8,000 people work in the company's South American division.

Photo: automaistv.com.br