In 2007, Michelin Nigeria shut its Nigeria manufacturing plant located in Port Harcourt, Rivers State, due to what it termed unfavourable operating environment, power issues and insecurity.
As a result, it laid off hundreds of Nigerian workers and cut down its local operations drastically, and focused on importation of tyres to feed its Nigerian market. According to BBC, 1300 staff were affected after the shut down of the Nigeria Factory.
However, it’s investments in rubber plantation in Edo and Ondo states were not affected by the sudden business decision to shut down local manufacturing.
Nonetheless, 17 years after operating in Nigeria without a local factory, the company has only about two months ago, taken another major business decision by allegedly putting up its only remaining office complex in Nigeria in the market, by moving to a rented apartment in Victoria Island, Lagos. It moved to its current rented apartment in June this year.
The office complex which has been serving Michelin for decades as its commercial headquarters, located in Ijora Lagos, is a two story building on Ijora Causeway.
Transport Day also found out that the company has nonetheless, kept hold of its warehouse located on the same street, from.where it distributes its products.
When Transport Day visited the office complex in Ijora, it was noticed that the front entrance has been sealed up, with only back access to the compound.
Informed sources told Transport Day that this may eventually be a precursor to the final exit of the company from Nigeria as it may eventually appoint a Distributing Company for its imported products in Nigeria.
However, when Transport Day reached out to the Managing Director of Michelin in Nigeria, Chioma Alonge, she refuted the allegation that the office complex is for sale. When probed further she added ” I cannot be talking about my business on telephone”.
Michelin Nigeria was established in 1961, achieving success as one of the most popular tyre brands in the local market.
