Making a move “in response to the unprecedented drop in market demand,” the BFGoodrich Tire plant in Opelika, Ala. is set to close by the end of October with production being shifted to other Goodrich sites in Tuscaloosa, Ala. and Fort Wayne, Ind.
The Opelika facility manufactures Goodrich and Uniroyal passenger car tires, employing about 1,000 hourly and salaried workers.
“Business decisions that directly impact the lives of our employees are extraordinarily difficult,” says Dick Wilkerson, chairman and president of Goodrich parent firm Michelin North America. “This action is necessary, however, for the long-term health and competitiveness” of the company, he adds. “In this crisis, there is no more business as usual.”
“Business decisions that directly impact the lives of our employees are extraordinarily difficult,” says Dick Wilkerson, chairman and president of Goodrich parent firm Michelin North America. “This action is necessary, however, for the long-term health and competitiveness” of the company, he adds. “In this crisis, there is no more business as usual.”
“Business decisions that directly impact the lives of our employees are extraordinarily difficult,” says Dick Wilkerson, chairman and president of Goodrich parent firm Michelin North America. “This action is necessary, however, for the long-term health and competitiveness” of the company, he adds. “In this crisis, there is no more business as usual.”
Michelin’s strategy is to position its plants in markets where its tires are sold; more than 85 percent of the tires the company sells in North America are produced on the continent.
The Opelika shuttering ensures that the company will be better able to fully utilize the capacity of its remaining North American Michelin and Goodrich facilities, according to Wilkerson.
He goes on to cite an “unprecedented drop in market demand,” noting how “the decision comes in the wake of the continuing economic crisis as consumers are driving fewer miles, purchasing fewer vehicles and delaying tire replacement purchases. The dramatic drop in market demand has created significant overcapacity in the North American tire markets that Michelin does not expect to rebound in the near term.”
According to the Rubber Manufacturers Association (RMA), North American tire sales volume is expected to decline for the second year in a row in 2009.
Regarding the Opelika plant, Wilkerson says the company will work with the appropriate government agencies, community leaders and the United Steel Workers union “to help make the transition for all affected employees as smooth as possible, including providing separation pay and other benefits.”
Recognizing that the facility is a significant part of the Opelika economy, the company is establishing a Michelin Development Program to assist in the creation of new jobs from diverse industries within the community.
For more information, visit www.michelin-us.com, www.bfgoodrichtires.com and www.uniroyaltires.com.
