In response to volatility in the European truck tire market, a segment that remains 23% below its 2007 historic peak, Groupe Michelin announced the planned closure of its truck tire plant in Budapest, Hungary.
Alongside such market factors, Michelin says the facility, acquired as part of its purchase of Taurus Rubber in 1996, is located in an urban area and cannot be further expanded, therefore any work to improve its competitiveness would require what Michelin considers an “excessive” upgrade with new equipment.
The closure will see the loss of 512 jobs.
As of mid-2015, production of Taurus, Riken and Kormoran brand tires will end in the Budapest plant and that production will be mainly relocated to Michelin factories in Poland, Romania and Germany. There was no specific timetable for when the plant will be totally shut.
Michelin will continue to manufacture high performance passenger tires in Hungary at its NyíregyhÁza plant and will also maintain the operations of its logistics center in VÁc, which serves countries in Central and Southern Europe, and its strategic raw materials marketing unit in Tuzsér.
In addition, Michelin will continue to manage its entry-level car tire operations from Budapest, while maintaining all of its Hungarian sales operations. (Tyres & Accessories)
