Michelin :Michelin Canada announces it will reduce the production of small-size tires at its Pictou County plant in Nova Scotia between now and July 2015

Mon Mar 3, 2014 11:00am EST

* Reuters is not responsible for the content in this press release.

PRESS RELEASE

Clermont-Ferrand - March 3, 2014

Michelin Canada announces it will reduce the production of small-size tires at its Pictou County plant in Nova Scotia
between now and July 2015.

Michelin also announces that it will invest CAD 66.5 million to strengthen manufacturing resources in its three Canadian plants.

Michelin is pursuing its operations at the Pictou County site and continuing to invest in Nova Scotia.

Given declining demand for small-size car tires in North America, Michelin today announced its plans to reduce production at its Pictou County Nova Scotia car and light truck tire plant over the next 18 months, between now and June 30, 2015.

Production to continue at Pictou County site

Michelin has a long history of production at Pictou Country and will continue to be a significant manufacturing employer. Approximately 500 employees will continue to work at the Pictou County plant after July 1, 2015.

The reduction of tire manufacturing at Michelin Pictou County will not affect Michelin's other two Canadian tire plants in Bridgewater and Waterville, Nova Scotia.

All impacted employees will have the opportunity to continue working for Michelin

All impacted employees will have the possibility of:

  • Transferring to another position at the Pictou County site or to another Michelin plant in Nova Scotia.  

  • Working in the Group's other two Canadian plants, both of which are located in the same province. 

  • Taking early retirement.  

Continued investment in Canada

Michelin remains the largest private manufacturer in Nova Scotia and has invested almost CAD 2 billion in its operations since its arrival in 1969. In the last eight years, from 2005 to 2013, Michelin invested CAD 587 million in its Nova Scotian manufacturing operations. In 2014, Michelin is investing CAD 66.5 million in its three Canadian plants. Michelin thus remains solidly anchored in Canada.

Accounting impact

To finance the project, the Michelin Group will book a provision of CAD 87 million in non-recurring expenses in its first-half 2014 accounts.

Michelin Development to open in community

Recognizing that the Michelin Pictou County plant is a significant part of the local economy, Michelin Canada is also launching Michelin Development, a community development program.

In its eight-year history in North America, Michelin Development has already helped to grow 84 small businesses and has been instrumental in creating over 1,300 jobs. 

 

Investor Relations

Valérie Magloire
+33 (0) 1 78 76 45 37
+33 (0) 6 76 21 88 12 (cell)
valerie.magloire@fr.michelin.com

Matthieu Dewavrin
+33 (0) 4 73 32 18 02
+33 (0) 6 71 14 17 05 (cell)
matthieu.dewavrin@fr.michelin.com
Media Relations

Corinne Meutey
    +33 (0) 1 78 76 45 27
    +33 (0) 6 08 00 13 85 (cell)
corinne.meutey@fr.michelin.com

Individual shareholders
Jacques Engasser
    +33 (0) 4 73 98 59 08
jacques.engasser@fr.michelin.com

DISCLAIMER

This press release is not an offer to purchase or a solicitation to recommend the purchase of Michelin shares. To obtain more detailed information on Michelin, please consult the documents filed in France with Autorité des Marchés Financiers, which are also available from www.michelin.com.
This press release may contain a number of forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions as at the time of publishing this document, they are by nature subject to risks and contingencies liable to translate into a difference between actual data and the forecasts made or inferred by these statements.





This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Michelin via Globenewswire

HUG#1765973
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.