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Michelin To Resume Production At NW Romanian Unit On April 1

Michelin Romania, the local division of French tire maker Michelin Group, will resume production, on April 1, at Silvania plant in Zalau, northwestern Romania, which was previously halted for 18 days in March, the company’s PR manager, Irina Septilici, said Thursday.
Michelin To Resume Production At NW Romanian Unit On April 1
26 mart. 2009, 16:18, English

Michelin Romania decided to halt production in the fallout of the global economic crisis, in an attempt to adjust its output to declining demand.

Early March, sources within the company said Michelin would halt production at Silvania, which employs nearly 1,300 people, for 18 days, in the fallout of the economic crisis, and its employees would attend training programs.

Michelin could also halt production at Silvania in April, for one week, most likely during the Easter holidays.

Michelin Romania previously halted production at its three Romanian units, Silvania and RomSteel Cord, in Zalau, and Victoria in Floresti, southern Prahova county, between December 12, 2008 and January 3, 2009, citing the world economic crisis.

The company’s marketing manager, Alina Ghica, said tire sales rose on the year in 2008, but declined to make any estimation for 2009.

Despite slightly lower sales in the first two months of 2009, Michelin still targets higher market share this year.

Michelin launched Thursday a new range of tires for SUVs. According to company officials, SUV tires account for nearly 3-4% of Romania’s replacement tire market.

French Michelin Group has been operating in Romania since 2001 via Victoria Floresti, which produces tires for cars and vans, Silvania Zalau, which produces truck and industrial tires, and Cord Zalau, which produces metal cords.