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Michelin to close La Roche-sur-Yon facility in France by 2020-end

Compagnie Générale des Établissements Michelin SCA announced Oct. 10 that it will close its facility in La Roche-sur-Yon, France, by the end of 2020.

The move comes after Michelin failed to complete its €70 million "Skipper" project, which aimed to reinforce the site's activity.

"This project ... did not produce the expected results due to the structural transformation of the premium truck tire market, both in Europe and overseas: a European market with no growth expected, intense competition, with an entry-level brand segment in constant increase," the company said in a statement.

Michelin plans to negotiate an agreement with social partners that will support the facility's 619 employees in order to avoid forced layoffs. As part of the negotiation, the company will offer secured internal and external mobility schemes to affected workers. An internal mobility scheme will give workers the option to be deployed to a different position in the company's other sites.

In addition, the 74 workers from Michelin's plant in Cholet who supply rubber mixes to the La Roche-sur-Yon facility will be offered a new position in the factory.

The tire manufacturer intends to propose a public-private project that will revitalize the site in La Roche-sur-Yon, allowing for the development of sustainable activities.