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 Labeling the facility “outdated,” the plant will be closed “because of a shrinking market for truck tires.”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.
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