Azernews.Az

By Alimat Aliyeva

The French company Compagnie Générale des Établissements Michelin, one of the world’s leading manufacturers of automobile tires, announced its intention to close two factories in France by no later than the beginning of 2026, Azernews reports.

"The factories located in the cities of Cholet and Vannes have been facing serious economic difficulties for several years. Despite the measures taken by the company, the viability of the plants could not be maintained. Both plants were significantly affected by the structural transformation of the passenger car and truck tire markets and the deterioration of competitiveness in Europe, particularly due to inflation and rising energy costs," according to a press release.

The company states that this decision was made as a last resort after "all alternatives and scenarios were analyzed and evaluated."

In recent years, the European market has seen a growing customer preference for cheaper tires, primarily from Asia, which has impacted the premium segment of European manufacturers. This situation has led to a structural oversupply of production capacity at some Michelin plants.

The two factories employ more than 1,250 people.

Production at the plants has been suspended until November 11 to allow for individual support measures to be offered to each employee, following negotiations between management and trade unions.