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COMPANY NEWS
Liberal Peer Visits Michelin’s Stoke Plant
As the recent £20m investment at Stoke reaches its completion the Michelin plant was recently visited by Lord Graham, former leader of the Welsh Liberal Democrats.
Lord Graham visited the plant to see what impact the £20m investment was having on the business.
The Remix Retread plant is now operating with market leading technology and is producing retread tyres built on Michelin casings, using Michelin technology to ensure the highest quality possible, making Remix products as close to the original as possible.
Lord Graham said, “We are trying to connect with industry to understand what British industry needs, and how we can ensure stronger investment in the UK, not just to protect jobs but our world expertise.
"I've come to hear more about Michelin's investment which is crucial to its future.”
According to factory manager, Sean Perry, efficiency is key to protecting the future of Michelin in Stoke. As the company developed new tyre technology it became critical that the plant was upgraded to enable it to produce the new products at the highest possible standards.
UK managing director for Michelin Eric le Corre said the tyre market had been a victim of the slowdown in the economy. He added, "One of the other big worries we have is the high cost of energy."
The European Tyre and Rubber Manufacturers' Association published figures last week showing a fall in tyre replacement sales in the first quarter of 2013.
It said the market for consumer tyres was down by 12 per cent due to factors including bad
weather conditions sparking a delay in the change from winter to summer tyres.
The truck tyre market, which Michelin's Stoke plant serves, also remained at the low level of the previous year, falling
one per cent. It has been said that the truck tyre market is a barometer of the economy. If commerce is in decline, there is less need for transport, trucks run lower mileages, tyres last longer, and as a consequence truck tyre sales show a reduction. When we see truck tyre sales across Europe rise, we will know the economy is also on the rise.
Mr le Corre added: "It is important to have a better relationship with members of Parliament so they have a better understanding of the reality of industr y.
"That's why I welcome Lord Graham and other members of Parliament who want to come here.
"With this investment in the Stoke retread factory we are one of the most modern plants in Europe.
"The difficulty is seeing what is happening six months down the line let alone in 10 years but we feel that the £20 million investment here, with help from the Government, is definitely helping us."
Michelin employs 650 people at its Campbell Road headquarters and factory.
Its Remix operation rebuilds tyres for the UK and European markets and operates 24/7 for 358 days of the year.
The investment is coming from the firm's French head office, supplemented by government cash. Once the work is complete and it is running at full capacity, it will produce 1,000 tyres a day.