Ardmore Michelin plant reducing production by 2025 - impacting approximately 1,400 jobs
ARDMORE, Okla. (KFOR) - Michelin North America says it will begin winding down tire production at its Ardmore site, with the goal of completing the process by year-end 2025 or sooner, impacting approximately 1,400 people working in the tire-making process.
Officials say the Ardmore site, which has produced passenger tires since 1970, is expected to continue rubber-mixing operations while tire production will gradually shift to Michelin’s other passenger-tire plants in North America.
In line with Michelin’s values of Respect, the Company is committed to support employees, the community and partners throughout this transition. Specific details will be discussed directly with employees starting today, and through individual conversations over the coming weeks.
North America’s passenger-vehicle market is changing rapidly and profoundly. Despite substantial investments over the past five years to improve technical capabilities and competitiveness, Michelin has concluded that the Ardmore factory is not equipped to deliver tires at competitive costs that will meet these evolving market demands in the coming years. Continuing investments to modernize the Ardmore plant would negatively impact other U.S. sites in the network.
Michelin cites market conditions such as an increase of light trucks, cross-over vehicles and electric vehicles on the road as major factors in the decision.
Precise timing has not been determined for specific phases of the wind-down, according to Michelin. However, Michelin expects the first wave of staffing reductions will occur in mid-2024 and additional reductions are expected to occur in phases through 2025.
“Michelin has strived to be a good steward in every chapter for this plant and community. Winding down operations is the hardest of all business decisions. The Company has carefully explored every other option before resolving this decision,” said Terry Redmile, senior vice president of manufacturing for Michelin Group’s Americas Zone. “In the months ahead, we’ll work through every stage of the transition with a deep sense of stewardship for the Ardmore community. Our goal is to provide individual support for each person at the Ardmore site to start a new chapter in the best way possible. This also includes starting conversations with local and state-level leaders to determine the best ways to lend support for this community even after the transition.”
Michelin paused its operations at the plant Thursday to present employees with the reduction plans and their options going forward.
Officials say company representatives will discuss separation benefits individually with each person who works in the factory over the coming days and weeks.
Michelin says it will offer retention bonuses going forward to achieve a smooth transition for employees and customers. When staffing reductions begin in 2024, Michelin will offer a combination of early retirement, separation benefits and financial incentives for relocation support.
Congressman Tom Cole, OK-04, released a statement following the announcement:
This news is certainly a shock and disappointment to the Ardmore community and surrounding areas as approximately 1,400 jobs will be affected.
My office will continue to monitor the situation and work with community leaders in any way we can to ensure the community’s and employees’ needs are taken care of.
Congressman Tom Cole