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Michelin considering future of German tire plant

ERJ reports that Michelin is considering the future of its car tire production plant in Bamberg as demand continues to fall for smaller-rim tire sizes.

The plant, which specializes in the production of smaller-sized passenger car tires, is facing “substantial difficulties” as competition from Chinese manufacturers increases and European drivers gravitate toward vehicles with larger tires, according to Maira Tuerk, site and change communication manager at Michelin Reifenwerke A.G. “The range of low-budget products has developed rapidly, (and) since 2010, the market share of the 16-inch premium segment has dropped from 60 percent to 40 percent,” Tuerk said. The French tire maker has entered into negotiations with the works council of the plant and unions to examine options for the future of the site.

The factory employs around 850 and manufactures 8 million tires per year.

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