Michelin closes its plant in Budapest and transfer production to facilities in Poland, Romania and Germany

Michelin today announced that its plant in Budapest, Hungary where production includes truck tires sold under the Taurus, Riken and Kormoran brands will terminate operations and will close the next year. The project which has been allocated 39 million euro involves the transfer of production mainly to the company’s facilities in Olsztyn (Poland), Zalau (Romania), Karlsruhe and Homburg (Germany). 

The company grounds the decision in a press release which states that “In response to the adverse trends and aggressive competition in the European truck tire market, which remains volatile and 23% down on its historic peak in 2007, Michelin has announced its intention to close its truck tire production plant in Budapest. The decision reflects the fact that extending the facility is no longer possible, due to its location in an urban setting, and that improving its competitiveness would require excessive upgrading with new equipment”.

According to the same source, the production in the plant in Budapest would be terminated in mid-2015. Even so, Michelin maintains a strong presence in Hungary where are established other three facilities in Nyiregyhaza, Vac and Tuzser.

In Romania, Michelin operates three production plants, two in Zalau and one in Floresti, the commercial activity being coordinated from its main office, located in Bucharest. Starting this year, Romania has become the coordinating center of the new commercial area in Central and Southern Europe which includes Albania, Bosnia and Herzegovina, Bulgaria, Cyprus, Croatia, Greece, Macedonia, Montenegro, Serbia, Slovenia and Hungary.