Michelin has announced that its truck tyre plant in Roche-Sur-Yon, France is set to close next year.
Competition from Asia and a slowing auto economy are behind this decision. 619 employees will lose their jobs as Michelin struggles to be profitable.
Michelin has promised to “support each of the 619 employees” affected by the closure, and said it would offer every one a chance to remain in the company in France.
The French tyre maker added that the 74 people who work at a factory in nearby Maine-et-Loiret, manufacturing rubber for the site in La Roche-sur-Yon, will also be affected.
The €70m invested into the plant was unable to produce the expected results needed to save it. Michelin blamed “the structural transformation of the premium truck tyre market, both in Europe and overseas: a European market with no growth expected, intense competition, with an entry level brand segment in constant increase”.