Bandag Europe NV has announced that it is to close its retread production plant in Lanklaar, Belgium, with production being centralised at the company’s Stargard facility in Poland.
Production Consolidated at Poland Plant
The decision to close the plant was put down to a 30% decrease in the European retread market over the course of the last decade, which had resulted in production overcapacity and uncompetitive production costs, predominantly driven by the import of low-cost truck and bus tyres from East Asia. These costs, said the company, have been further impacted by high energy prices and inflation.
“After careful analysis, considering cost optimisation as well as current and future production capabilities, centralising production at one location, specifically Stargard (Poland), is considered the only remaining option to ensure a future for the company’s retread business in Europe,” said the company.
According to Bandag, the Lanklaar plant will be closed around the first half of 2025 There are currently 111 employees at the plant.
Jan Deneir, Plant Manager Bandag Lanklaar, said: “Bandag’s management is conscious of the potential impact of the envisaged closure. We intend to manage the process with respect and consideration for the impacted employees. We aim to conduct a constructive and transparent dialogue with the social partners throughout the information and consultation process. In the event of a closure, Bandag is committed to developing a fair social plan and will put the necessary efforts in place to support the affected employees in their search for a new job. We will also be providing psychological support for anyone who might require it.”
