OREANDA-NEWS  Michelin has announced the closure of two factories in the French cities of Cholet and Van. This is reported by the press service of the tire manufacturer that left Russia.

The decision to close production is explained by the deterioration of Europe's competitiveness.

"Despite the remarkable activity of the team and the efforts of the group, it was not possible to maintain the viability of the two plants. Both plants have been seriously affected by the structural transformation of the markets for passenger and light truck tires and truck tires, as well as by the deterioration of competitiveness in Europe, in particular due to inflation and rising energy prices," the company's representatives say.

The closure of the plants was called inevitable, given the growing consumer demand for cheap tires imported from Asian countries. The industrial sites will be open until November 11 — this time has been given to the management and trade unions to discuss with employees the conditions for their reduction. The enterprises in Shola and Van employed 1,254 people.

In May 2023, the world's second largest tire manufacturer Michelin sold its Russian business to tire distributor Power International Tires. A factory in Davydovo near Moscow and Camso CIS, which specializes in the trade of tires and tracks for special equipment, were transferred to a Russian company. The company did not disclose the amount of the transaction. The press release says that most of the expenses related to the withdrawal from the Russian market were taken into account last year — the company wrote off 202 million euros due to the suspension of local operations.