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Michelin Tires Cuts 1,400 Jobs Ending Ardmore Plant
October 26, 2023
Yahoo!finance reported that “Michelin winds down tire production at Ardmore, cuts 1,400 jobs.”
In a move that’s likely to have a significant impact on Oklahoma’s local economy, Michelin, the renowned French tire manufacturer, announced on Thursday its plan to halt tire manufacturing activities at its Ardmore factory by 2025. This conclusion will unfortunately lead to the elimination of roughly 1,400 jobs.
Michelin’s decision to discontinue tire production in Ardmore stems from the factory’s inability to produce tires at competitive costs.
The Ardmore plant has been a vital part of Michelin’s operations since it commenced passenger tire production back in 1970. The plan to slash staffing in Ardmore will be rolled out strategically, with the first phase of job reductions set to unfold in mid-2024. The remainder of the layoffs will follow in subsequent phases throughout 2025 as operations wind down.
In a sign of strategic realignment, Michelin divulged plans to gradually redirect tire production to its other North American passenger-tire factories. However, the Ardmore facility is expected to sustain its rubber-mixing operations, according to the company widely recognized for its eponymous travel guides.
This announcement comes in the same week that Michelin revised its forecast for full-year free cash flow before acquisitions, increasing it from 2 billion euros to 2.3 billion euros ($2.4 billion). The adjustment is attributed to lower volume and costs. (Coverage by Mehr Bedi in Bengaluru; Edited by Shailesh Kuber)
Michelin Tires Impacts Ardmore Oklahoma
KXII added how Michelin’s Press Release confirmed plans to cease tire production at its Ardmore facility by the end of 2025, or possibly earlier. This development stands to affect approximately 1,400 employees presently working at the plant.
While tire production is being phased out, the company has indicated that rubber mixing operations will continue at the Ardmore factory.
The Ardmore plant has been a staple of the company’s manufacturing portfolio and a significant part of the local community since its establishment in 1970. This unfolding development marks a major shift in its operational strategy.
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