Michelin shifting Olsztyn factory to premium EV tires of 19-23 inches, cutting smaller sizes. Invested 1 billion PLN in Olsztyn upgrades. Moved truck tire production from Olsztyn to Italy, Spain, Romania. Poland labor costs exceed Romania's but infrastructure and skills keep it attractive. Unemployment at 2% creates severe worker shortages in Olsztyn. Hired 1000 workers in 2021, 1000 in 2022, 300 last year, still short. Relied on 200 Ukrainian workers before war reduced male inflow. Automation requires more skilled workers, not fewer. Workforce stable at 5000 despite shifts. Europe costs now twice as high as 5-6 years ago. Americas costs up 60-65%, Asia unchanged. Europe flooded with cheap Indian ag tires but can't sell there due to barriers. Indian market closed to Michelin quality products. Energy costs surging with shift to electric vulcanization. No own power generation planned, relying on Europe-wide energy contracts. Car tire demand slows for OEM, shifts to cheaper replacement tires. Olsztyn produces molds and textile cord for all Europe Michelin plants. Small construction machine tires growing strongly.
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