“Due to the unfavorable trends and aggressive competition on the volatile European truck tire market that has reported a 23 percent drop compared with the all-time high of 2007, Michelin is announcing its intention to close down the truck tire factory in Budapest. The decision should reflect the inability to expand the unit because of its location in an urban area and improving its competitiveness would require excessive equipment upgrading,” a press release issued by the company on Tuesday notes.

Following the shutdown of production at the Budapest plant mid-next year, Michelin has promised to provide “individual aid” to each of the factory’s 512 employees.

Michelin owns two car tire factories in Romania – in Floresti (Prahova) and Zalau (Salaj) – which are supplied with metal cord by the Zalau Cord plant. (source: nineoclok.ro)