Michelin closing two tire plants in Colombia

Michelin announced this week that it was shutting down its Colombian subsidiary Icollantas. The decision will result in the closure of two plants: the Chusaca plant produces truck tires, while the plant in Cali produces passenger car tires. The decision will affect about 460 workers. The shut-downs are expected to be completed over summer 2013.

Michelin said in a press release:

In response to more than a decade of substantial annual losses in Colombia, which repeated investments have failed to stem, Michelin has decided to discontinue the manufacturing operations of its local subsidiary Icollantas. Due to its insufficient size and other local economic factors, the unit has never managed to be competitive.

The decision leaves Colombian with just one tire plant: Goodyear’s plant in Cali that produces passenger car, truck, ag, and OTR tires.