QUERÃTARO, Mexico (July 7, 2009)—Michelin North America Inc. closed its commercial truck tread pressing plant in QuerÃ&Copy;taro, Mexico, effective today, because of overcapacity in its North American retread operations.
The Greenville, S.C.-based tire maker said production from the Michelin Retread Technologies plant in QuerÃ&Copy;taro, which employs about 80 people, will shift to the company's retread plant in Covington, Ga.
Michelin said the decision has no impact on the continuing operations of its passenger car and light truck tire plant in QuerÃ&Copy;taro.
Because the commercial truck tire retread market has not achieved the growth anticipated by North American industry forecasts—thus resulting in overcapacity—Michelin said it is restructuring its North American retreading operations to respond to market demand.
While the QuerÃ&Copy;taro plant's operational performance “has been excellent, financial and market factors make this decision necessary to maintain the long-term health and competitiveness of the company. Michelin is working with employees to help them make as smooth a transition as possible,” the tire maker said.