Marangoni Group has confirmed that it will end new passenger car and van tire production at its Anagni, Italy, factory.
The announcement comes amidst local news reports of despondency amongst workers who expected to return to work in September after two postponements in August. Around 400 employees at the Anagni plant will be made redundant.
The group said it would “assess possible solutions with relevant organizations and parties in managing this difficult period.” Unions are said to be planning solidarity events in support of workers.
Marangoni’s decision to end production comes despite investments in financial and technical resources amounting to 34 million euros since 2005. According to the company, this also comes in addition to “the adoption of ordinary and extraordinary measures to protect jobs.”
Nevertheless Marangoni’s management reports that it has not been able to overcome what it calls “the structural and market situation including the increasingly widespread competition from low cost tires manufactured outside of Europe.”
The company also blamed macroeconomic difficulties due to the global crisis, pointing out that demand for passenger car tires in 2012 fell 13% in Europe and 26% in Italy.
In the future, Marangoni Group said it will concentrate on tire retreading products, machinery and systems, which are said to account for 80% of total sales. In recent years, the company has been increasingly establishing itself in markets outside of Europe, such as North and South America.
Marangoni reports that continuity of deliveries will be fulfilled by the availability of stocks and additional supplies. (Tyres & Accessories)
