Michelin to Close Truck Tire Plant in Poland, Relocate Production to Romania

Michelin, the French multinational tire manufacturing company , has announced plans to shut down its truck tire production facility in Olsztyn, Poland, by the end of 2024. The closure will affect around 500 employees at the plant, which has been in operation since 2004. The company cites increasing competition from cheaper tire imports and the challenging market conditions in the truck tire segment as the primary reasons for this decision.

According to Michelin, the production line from the Olsztyn plant will be relocated to Romania, where manufacturing costs are presumably lower. This move is part of a broader trend of multinational corporations reducing their manufacturing footprint in Poland, which has affected thousands of workers across various sectors in recent years.

Michelin Poland has stated that it plans to avoid layoffs and aims to relocate the affected workers to other Michelin facilities in Olsztyn. The company is currently in discussions with employee representatives to finalize the details of these arrangements, including potential transfers to other departments or severance packages for those who cannot be reassigned.

Why this matters: The closure of Michelin's truck tire plant in Poland highlights the ongoing challenges faced by the manufacturing sector in Europe, as companies seek to remain competitive in a global market. The shift of production to lower-cost countries like Romania highlights the impact of these economic pressures on workers and local communities.

Marek Wójcik, the mayor of Olsztyn, expressed his disappointment with Michelin's decision, stating, "This is a difficult situation for the employees and their families, as well as for our city. We will work closely with Michelin and other affected parties to support the affected workers and explore opportunities to attract new investments to the region.

Michelin's announcement comes amidst a series of similar moves by other companies in Poland, such as Backer OBR and Levi Strauss & Co., which have also recently announced layoffs or plant closures. These developments reflect the broader challenges faced by the manufacturing sector in Poland and across Europe, as companies contend with rising costs, increased competition, and shifting market dynamics.

Key Takeaways

• Michelin to close truck tire plant in Olsztyn, Poland by 2024.
• Production to be relocated to Romania due to lower manufacturing costs.
• Closure to affect around 500 employees; Michelin aims to avoid layoffs.
• Closure highlights challenges faced by manufacturing sector in Europe.
• Follows similar moves by other companies in Poland, reflecting broader trends.