Company attributes a decision to the growing entry of imported products with prices below the national cost; 350 workers will be dismissed
Michelin has announced that it will end the industrial activities of its factory in Guarulhos, São Paulo, by the end of 2025. The company states that the operation has become economically unfeasible because of “productive supercapacity” caused by increasing entry of imported products with prices lower than national cost.
In a statement, the French multinational reported that about 350 employees will be affected by the closure of activities. A dismissal package is under negotiation with the union of the category and should include financial support and professional guidance.
The company did not disclose the value of the operation or the estimated financial impacts.
The Guarulhos unit is responsible for the production of motor chambers for motorcycles and bicycles, industrial tires and components used in other factories of the company.
The national sector faces difficulties. The sale of tires totaling 50.6 million units, the lowest volume since 2013. The retraction has been pulled by the weakening of replacement sales and walking tires, with a drop of 6.7%.
Despite the unit’s closure, Michelin said it will continue with its other operations in Brazil.
The French multinational maintains 8 factories in the country and employs over 8,000 people and operates throughout the chain of the sector.
“We also guarantee the fulfillment of our commitments with all our customers at this time of transition,” says Hervé Le Gavrian, CEO of Michelin South America.
