Michelin to close Budapest plant due to “shrinking tire market”
Michelin Hungária today announced the planned closure of its plant in Budapest. Labeling the facility “outdated,” the plant will be closed “because of a shrinking market for truck tires.” Interesting reasoning there, considering just-released statistics from European Tyre & Rubber Manufacturers Association (ETRMA) showed notable increases in tire sales – including among truck tires – throughout the European Union in the first quarter of 2014, not to mention nearly double average EU sales in Hungary.
Also cited as a reason for the plant’s closure is the location, which “does not make [revitalization of the facility] economically feasible.
Company representatives promised to continue production of its “Super Sport” tires at the Michelin factory in Nyíregyháza and to remain committed to its Budapest logistics base and trade unit in Tuzsér.
A total of 512 jobs will be lost with the plant’s closure.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.