Michelin moving forward with plant closures in France

CLERMONT-FERRAND, France—Michelin and trade unions representing employees at the firm's targeted-for-closure factories in Cholet and Vannes, France, have reached an agreement on severance packages for employees at those facilities.

Michelin is planning to shutter the plants—the 54-year-old passenger and light truck tire plant in Cholet and a metal reinforcement products unit in Vannes—by early 2026 "at the latest."

The closings will impact 1,254 employees, to whom Michelin said it would provide support, the company said last November.

Michelin said negotiations over the past three months have focused on the three aspects of support: external mobility, internal mobility, end of career corresponding to existing best French practices.

Around 12 percent of the staff at both sites, or roughly 150 individuals, applied for other positions at Michelin offered through internal mobility, Michelin said, noting it will offer them financial and logistical support, such as mobility and adjustment allowances, as well as assistance in finding housing and employment for spouses.

Around 15 percent of the employees, or 150 to 180 individuals, have opted to take early retirement. Michelin will offer a "transition organization" with compensation equivalent to 75 percent of the salary, assistance with moving and buying back quarters.

Additional provisions will be put in place, such as assistance with moving or specific allowances depending on the professional career in the company.

The remainder of those affected, approximately 73 percent of the staff at the two plants, will be offered "external mobility" provisions that include redeployment leave, training and compensatory allowances, such as:

• Aid for professional retraining as part of a redeployment leave;
• 12-month redeployment leave, increased by 3 months, renewable for employees over 50 and people with disabilities, which can be extended to 24 months in the event of professional retraining from Sept. 1; and 
• Allowance corresponding to 90 percent of net remuneration.

Employees have until March 24 to accept Michelin's offers.

Besides these two plants in France, Michelin is planning to close two factories in Germany and phase out production of certain products at a third.

Citing the negative impact of low-cost imports, inflation and rising production costs, Michelin has plans to close factories in Karlsruhe and Trier and phase out truck tire and semi-finished product production in Homburg.

The restructuring measures will impact 1,410 employees at the facilities, which are to cease industrial activities by year-end, Michelin said.