Michelin, has announced its decision to wind down tyre production at its Ardmore site in Oklahoma by 2025. This significant move will result in the unfortunate loss of 1,400 jobs, leaving a profound impact on the local community and economy.
The Ardmore plant, which has been operational since 1970, has been a significant player in the production of passenger tyres. However, the decision to cease operations comes as the plant is no longer able to produce tyres at competitive costs, prompting Michelin to shift tyre production to its other passenger-tyre plants in North America. Despite the cessation of tyre production, the company has stated that rubber-mixing operations at the Ardmore factory will continue.
The first wave of staffing reductions is expected to occur in mid-2024, with the remaining job cuts taking place in phases through 2025 as operations gradually taper off. This move comes as Michelin recently raised its forecast for full-year free cash flow before acquisitions to 2.3 billion euros ($2.4 billion), citing lower volume and costs.
As we bid farewell to a significant chapter in Ardmore's history, it is crucial to recognise the impact this closure will have on the community and the lives of those affected. The focus must now shift to providing support and resources to the displaced workers and exploring new opportunities to revitalise the local economy in the wake of this significant loss.
