MADRID - The Spanish unit of tire maker Michelin has proposed a reduction of 1,300 workers by 2005, a spokesman for the firm said on Friday in what he called a bid to increase the competitiveness of its plants.
"The plan is to reduce the workforce by around 400 staff per year," the spokesman said, confirming local press reports.
Michelin employs about 9,400 people in Spain at four plants.
"We hope to reach an agreement (with trades unions) in the next four or five weeks," he said.
The local group would shut its alloy wheels plant at Aranda, affecting 600 workers, he said. The rest of the cuts would be at plants in Valladolid and Lasarte.
At the same time the group, aims to invest 120 million euros ($129.8 million) in its tire-manufacturing plant for cars and trucks, to implement new technology and increase production by 12 percent.
Michelin had turnover of 1.8 billion euros in Spain in 2001, with net profit of 164 million euros.