Groupe Michelin will cease production at its Ota, Japan, plant this July due to excessive production costs, according to company officials.
"Despite measures taken, in particular since 2006, to improve productivity, reduce production costs and, from 2007, refocus on the production of complex products such as X Ice tires, the production cost at the Ota plant remains around twice as high as those of other plants serving that tire segment."
Ota's production will be sent to other Michelin consumer tire plants in Asia, Europe and North America.
Michelin says it will continue to develop its operations in Japan, as well as the Asia Pacific region in general, "notably through its research and development programs in Ota, its sales operations throughout the country," and other means.
