Michelin reorganizes Italian operations
French tire maker Michelin said Tuesday it plans to reorganize its Italian operations, including closing one of three tire manufacturing lines in Italy, citing a glut of mid-range tires in the European market.
Michelin officials said it will shutter its tire manufacturing unit at its Stura facility at Turin at the end of 2009 and transfer about 700 employees to other facilities. The Stura facility will continue to produce some products and remain a logistics center for the firm.
The firm said the closure will result in a non-recurring cost TO the 2008 books, but it did not reveal the size of the cost.
In addition, Michelin said it would spend more than $250 million over the next five years to improve productivity and competitiveness at several other Italian facilities.
The firm also said it would increase its production of the firm's premium tires at its plant in Cuneo, Italy.
Michelin reorganizes Italian operations
