MICHELIN, the French tyre maker, has given details of its decision to quit Nigeria.
At a press briefing, the Corporate Affairs Manager for Michelin Nigeria Limited, Mr. Ojo Osagie, disclosed the factors that contributed to the decision and the measures the company planned to take in the coming months.
High production costs caused by the absence of a reliable public power supply was listed as the major reason for the closure of Michelin�s Port Harcourt factory.
Osagie was quick to dispel rumours that the decision was in any way connected to Nigeria�s political situation and added that the cessation of production would not have any effect on the company�s plantation and sales operations within Nigeria.
Osagie said that following a meeting between Michelin and the Rivers State government, a committee had been set up to work out how to look after the affected workers� interests while implementing the closure and promised that employees would be compensated according to their entitlements.
The short time working measures already in place would continue until the end of May, he added.