PARIS—Michelin will close two tire plants in Colombia in the coming months, citing a decade of "substantial losses" in Colombia and the plants' insufficient size.
At the same time, Michelin said it intends to step up the sales and distribution efforts in Colombia by developing the Michelin Columbian sales force, which will grow to more than 60, and working with it existing "solid" distribution network.
Closing the Chusaca truck tire and Cali passenger tire plants will affect about 460 workers, Michelin said.
Michelin acquired the plants and associated sales and distribution assets in September 1998 with its purchase of Industrias Colombiana de Llantas S.A. (Icollantas), an independent company which at that time had been a BF Goodrich licensee for many years.
In accordance with Colombian law, Michelin said, a notice of intent to close has been filed with government authorities. Michelin is offering personalized socio-economic support to the workers affected to help them find new jobs.
In respect to the project, Michelin will show $133 million in non-recurring expenses in the consolidated financial statements for the six months ending June 30.