Commercial Business

Michelin will close truck tire plant in Hungary

Posted on May 7, 2014

Groupe Michelin has begun steps to close its truck tire plant in Budapest, Hungary. According to Michelin, the closing is necessary "in response to the adverse trends and aggressive competition in the European truck tire market, which remains volatile and 23% down on its historic peak in 2007."

The company says the decision "reflects the fact that extending the facility is no longer possible, due to its location in an urban setting, and that improving its competitiveness would require excessive upgrading with new equipment."

Truck tire production at the facilty will be terminated in mid-2015. The plant manufactures Taurus, Riken and Kormoran brand tires. Production will be reallocated mainly to the Michelin facilities in Olsztyn, Poland; Zalau, Romania; and Karlsruhe and Homburg, Germany.

The closure will leave Michelin with three facilities in Hungary:

1. a high performance passenger tire manufacturing plant in Nyíregyháza;

2. a logistics center in Vác, which serves countries in central and southern Europe; and

3. a strategic raw materials marketing unit in Tuzsér.

In addition, Michelin will continue to manage its entry-level car tire operations from Budapest, and maintain all of its Hungarian sales operations.

As part of the information and consultation process, Michelin says it will offer individual support measures to each of the 512 concerned employees.

Michelin also will meet with local authorities to discuss possibilities of reconverting the site in accordance with their urban development projects, and intends to help develop business activities likely to create jobs in the region.

To finance the project, Michelin will book a 39 million euro provision ($52.8 million based on the May 6, 2014, exchange rate) for non-recurring expenses in its first-half 2014 accounts.

Related Topics: Hungary, Michelin financials, Plants, truck tires

Comments ( 0 )
More Stories
Publisher David Wilson believes there is still a future for tire retreading as a profitable business.
News Tyrexpo Africa: A Global Viewpoint on Retreading

In preparation for Tyrexpo Africa, to be held April 10-12, 2018, at the Gallagher Convention Center in Johannesburg, South Africa, David Wilson, publisher and editor at Retreading Business and the publisher for three specialist magazines for the tire industry, shares his views on the overall outlook of the global commercial tire retread market.

Hiring a third party to come in and mystery shop your stores, both in person and via telephone, will help you see what you can’t see.
Article 71% of Employees are Disengaged: So What Makes You Think Yours are Not?

Do you see what I see? Of course not! If you could see through your customers’ eyes, they would tell you how well, or how poorly, your employees engage customers. It’s not that easy to track, however.

In addition to warning its employees on the dangers of texting and driving, Ramona Tire promotes that message to the public with its “Please make it home safe today” digital billboard on I-215 west of Hemet, Calif. (see sidebar).
Article How Is the ‘Health’ of Your Business Insurance Coverage?

Many of us make it a point to see our doctor for regular checkups. Doing so gives the physician the opportunity to assess the current condition of our health, and gives us a chance to ask questions about medical issues or concerns. A thorough exam can help to diagnose early symptoms and gives the doctor an opportunity to offer recommendations and advice for a healthier lifestyle.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!