French tire maker Michelin will “gradually cease” production at its sites in Karlsruhe and Trier in Germany and will discontinue “new tire and semi-finished products manufacturing” in Homburg, the company said on Tuesday.
The Michelin plant in Karlsruhe is the company’s oldest site in Germany, founded in 1931. Its current production capacity is 1.1 million light truck tires. Michelin will also transfer its customer contact center from Karlsruhe to Poland.
These operations are planned to be completed by the end of 2025. In total, 1,532 employees are affected.
The company cited “the growing competition of budget truck tires and the lack of competitiveness of our German operations” as its main reasons for the decision.
The soaring prices of natural gas and electricity, which are essential for tire production, have pushed the production costs higher and made it increasingly difficult for the company to make profits in the country.
U.S. tiremaker Goodyear said earlier this month that it will also cease production at two of its manufacturing facilities in Germany, cutting around 1,750 jobs