Michelin announces shutting down two of its tyre manufacturing plants in Europe by 2026.

The Michelin Man has been iconic and his smile is recognized by people across the globe, but these are not such good days for the tyre manufacturing company.

Unfortunately, with competition hotting up from Asian tyre manufacturing power, Michelin is forced to announce the plans to stop manufacturing in its factories located in France.

The main reason for is this competition from Asia - China, India, Indonesia and Thailand are countries where the cost of manufacturing is substantially better.

Europe is progressing on manufacturing of products which are technology heavy and basic products like tyres are being made in Asia on a scale that brings economies which are not possible to achieve in Europe.

This shift of manufacturing facilities to Asia has been ongoing for many decades – with most famous tyre brands across the globe shifting manufacturing to Asia.

Pirelli tyres is also an interesting case where SinoChem of China holds 37% of the company’s shares as the largest share holder.

The Italian government is trying to make use of a Golden Power mandated in the Italian laws, which can help to protect assets of strategic importance to Italy.