Compagnie Generale des Etablissements Michelin SCA Announces Reorganization of Truck Tire Production

Compagnie Generale des Etablissements Michelin SCA announced that it is to regroup its production of heavy truck tires at its La Roche-sur-Yon site. The Joue-les-Tours site will cease to produce truck tires, and will instead focus on semi-finished products. The Company's truck tire factory in Algeria will cease production. Of the 930 people currently employed at the Joue-les-Tours plant, around 200 will continue to work at the new facility specialized in semi-finished products. Of the 730 others, 250 could have pre-retirement programs, while each of the 480 remaining persons will be offered two positions corresponding to his or her qualifications at another Michelin plant in France. For employees unable or unwilling to relocate, career transition workshops will be set up. The production and marketing of Michelin truck tires in Algeria will be sold to Cevital. Cevital will initially acquire 67% of the local subsidiary's capital, before buying out the remaining shares in a second phase. Production at the Algerian plant, which is too small to be sufficiently competitive and whose urban location prohibits any future expansion, will be discontinued in late 2013.