Tyre maker Michelin will close a plant in the state of Queretaro in central Mexico by the end of this year, the company announced on Monday.
The decision was a “last resort,” prompted by changes in the passenger car and light truck tyre market, the company said, adding that it affects 480 employees will be affected.
“The Queretaro plant will be closed because it has become obsolete, as it is configured to produce smaller tyres, while the market has evolved toward larger rims and tyres,” a representative for the company said.
The Queretaro plant is the oldest of Michelin’s two plants in Mexico. A second plant in the city of Leon, Guanajuato, has operated since 2016 and is one of the company’s most modern plants globally, the company representative said.
Michelin’s corporate operations will remain in Queretaro, while production continues out of Leon, the representative said.
