Michelin sells two division plants

Michelin is selling its Sri Lanka-based Midigama Tyre Division and Casting Product Division plants that manufacture bias tyres and tracks for compact Construction equipment, to the CEAT group.

Senior Vice President, Beyond Road Business Line at Michelin Nour Bouhassoun, said: “Michelin firmly believes that CEAT is the right fit to carry on our bias tyres and tracks for compact construction equipment business.’’

‘’With this operation, Michelin is continuing to reshape its Beyond Road business, in line with the Group’s sustainable growth strategy.” In addition to the production facilities, the sale will also include the Camso brand, a renowned brand in these segments, at the end of a three-year licensing period.

The Group will focus on its most value accretive offers for Construction application and also intends to continue its other manufacturing activities in Sri Lanka.

“The country remains important for Michelin, where the company plans to continue modernizing its production facilities alongside improving performance – as everywhere in the Group.”With this operation, Michelin and CEAT are aligned and do not intend any layoffs at either of the two plants.

Michelin and CEAT will work together to implement appropriate measures for all 1,587 employees at the Midigama Tyre Division and Casting Product Division plants and the related support functions, creating the right conditions for a smooth handover between the two companies.

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