PARIS (Dec. 5, 2007) — Michelin will book a charge of nearly $190 million against this year´s earnings to cover the costs of closing its Toul, France, passenger tire plant next year.
Michelin said this sum includes project severance and plant and equipment depreciation costs as well as those in connection with the re-industrialization of the Toul site and the revitalization of the employment area.
Michelin disclosed in October it plans to close the 38-year-old Toul plant operated by its Pneumatiques Kleber subsidiary, which is focused on low value-added mid-range car tires.
Michelin also said it expects to divulge in the next few days the amount of its industrial reorganization expenses for Spain, where it expects to spend about $460 million to revamp its four plants there.