French tyre maker Michelin announced Friday it would close its Japanese plant, which employs about 380 people, and move the production to other sites in Asia, Europe and North America. The company blamed the move on the global economic crisis and the high production costs at the Ota plant north of Tokyo.
"Despite measures taken, in particular since 2006, to improve productivity, reduce production costs and, from 2007, refocus on the production of complex products such as X Ice tyres, the production cost at Ota plant remains around twice as high as those of other plants serving that tyre segment," it said.
Michelin has been investing heavily to build new plants in fast-growing emerging markets such as India and Brazil, where labour costs are lower than in Japan.
The French group, stung by a slump in sales, is cutting more than 1,000 jobs in France.
Michelin said it would retain a presence in Japan, home to its arch-rival Bridgestone, with research and development programmes and a sales network in the world's number two economy. It said it would help the Ota plant employees look for new jobs, either with Michelin or elsewhere.
Japan's Bridgestone, which vies with France's Michelin to be the world's top tyremaker, has also been hit hard by the global economic downturn, which triggered a slump in sales of cars and other vehicles. In October Bridgestone said it would shed nearly 900 jobs in Australia and New Zealand as it closes manufacturing plants there.
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