French Govt Presses Michelin to Invest in Doomed Site image

French Labor Minister Michel Sapin said that Michelin should be part of the redevelopment of a truck tire facility where the company plans to stop production in 2015.

Earlier this week Michelin announced it will cut 700 jobs in France, due to the European downturn. French Labor Minister Michel Sapin said that the tyre maker should make sure that all employees that the company will lay off should find jobs somewhere else.

“I also want there to be a very strong requirement that the site be redeveloped industrially,” the French minister said.

Michelin promised to invest 800 million euro in other plants in France and also offer early retirement or the option of transfers to all its employees that will be left without jobs after the company will stop production at the Joue-les-Tours. The company might also sell part of the plant after it will cease production, and the money will be invested locally.

The industry minister Arnaud Montebourg, who said about Peugeot’s plan to cut 8,000 jobs and close a plant in France that it is unacceptable, sees ‘good and bad news’ in Michelin’s restructuring plan.

“It includes an investment of 800 million euros in France,” Montebourg said during a visit to southwest France. “We’re asking Michelin for more information and we’re keen to hear the views of staff representatives across the whole company.”

Source: Autonews