Michelin will end tire production at its passenger and light truck tire plant in Ota, Japan, in July, citing the plant’s high operating costs as the reason.
Michelin blamed high costs and the economic crisis for its decision to stop tire production at its plant.
“Despite measures taken, in particular since 2006, to improve productivity, reduce production costs and, from 2007, refocus on the production of complex products such as X Ice tyres, the production cost at Ota plant remains around twice as high as those of other plants serving that tyre segment,” it said.
Michelin said it would retain a presence in Japan and that it is holding discussions with employee representatives to “rapidly deploy measures” to enable employees affected by the closing to find jobs, either within Michelin Group or elsewhere.
Michelin plans to take a 140 million euro charge on its 2009 books as part of overall restructuring plans.