A few days ago, Michelin Tire Company announced that according to its strategic adjustment plan, the factory in Fossano, Italy, will be closed by the end of 2016. The 400 employees of this plant will all be cut.
Michelin joins layoffs
Michelin also stated that it will continue to streamline the Italian company staff and cut 178 people by 2020. The reason is that due to excess capacity, the company needs to integrate its production plants to remain competitive. For the abatement of production capacity, Michelin stated that it may purchase from external suppliers or be provided by other factories in Europe.
In accordance with Michelin's plan, it will close a factory in the United Kingdom, Germany and Italy, and delay the investment plan in India. It is predicted that this move will involve at least a few hundred employees.
Previously, the United States tire manufacturer Goodyear shut down some of Europe's factories, and is preparing to lay off 400 people; tire maker Noah also plans to layoffs in Finnish factories, and hundreds of people are affected.
According to judgments of industry insiders, the retrenchment actions of the tire giants show that the global tire market is facing the risk of entering the "winter", and next year there may be more tire companies joining the team that closes factories and lays off staff.
TAISHAN KANGDA ELECTRICAL APPLIANCES CO., LTD. , https://www.sonchtech.com