Michelin to Shut Down Brazil Factory by December Amid Asian Competition

On June 27, 2025, Michelin Group announced plans to halt operations at its Guarulhos factory in São Paulo, Brazil, citing low-cost Asian imports as the primary reason. The facility, which produces motorcycle and bicycle inner tubes, industrial tires, and semi-finished products, currently employs 350 workers. Michelin is working with local unions on the closure, which is expected to be completed by December 2025.

Michelin stated that overcapacity caused by a surge of Asian imports has rendered the factory unsustainable. Imported products are entering the market at prices below local production costs, significantly impacting the motorcycle and bicycle inner tube segments. The company emphasized that market conditions show no signs of improvement, leaving no viable alternative to continue operations.

The Guarulhos factory is one of four Michelin facilities in Brazil, including a truck and bus tire plant in Campo Grande, Rio de Janeiro, which employs over 4,000 workers, and two other factories in Itatiaia and Manaus.

This marks the second South American plant closure announced by Michelin within a month, following the planned shutdown of a Mexican factory earlier in June. The decision underscores the growing impact of low-cost imports on local production in Latin America.