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Michelin to Shutter Alabama Tire Plant in $250 Million Restructuring

Compagnie Generale des Etablissements Michelin faces a $249.9 million non-recurring charge this year as it pivots away from its Alabama manufacturing footprint. The French tire giant plans to phase out operations at its Tuscaloosa facility by 2028, consolidating production at an existing site in Fort Wayne, Indiana.

Michelin to Shutter Alabama Tire Plant in $250 Million Restructuring

The transition will affect roughly 1,200 employees at the BFGoodrich Tires plant in Tuscaloosa. The decommissioning process is slated to begin early next year, unfolding in stages over the next four years until the site closes permanently at the end of 2028.

Management attributed the decision to systemic underutilization across its U.S. portfolio. According to the company, both current BFGoodrich sites have been operating significantly below designed capacities, creating structural inefficiencies that the manufacturer deems unsustainable in the current market environment.

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