Michelin Ardmore plant winding down operations by 2025, resulting in 1400 layoffs

[biggins]

Not really metro news, but this is a body blow for Ardmore and Southern Oklahoma. Michelin is winding down operations in Ardmore by 2025, which employs over 1400 people and has been in operation for 53 years. I'm not aware of another closure of this magnitude outside of the metro - this is far and away the largest employer in Ardmore and draws workers in from 50+ miles away. Plus, they have historically set the pay scale for skilled labor in the region. Simply speaking, service, retail, and distribution jobs won't be able to fill the gap. It's difficult to describe the impact this will have, but none of it is good.

Ardmore Michelin Tire Plan Closing

[Pete]

Yep, really devastating.

1,400 well-paying jobs that have been in that community for 50 years.

[BoulderSooner]

Yep, really devastating.

1,400 well-paying jobs that have been in that community for 50 years.

not that it helps a ton but it is nice that this doesn't start until mid 2024 .. (so even the first to get let go have 8+ months notice) and some will be there until 2025 ..

[chssooner]

The irony is that this probably being their lowest personnel cost plant is astounding. Sucks for Ardmore, as they won't be able to replace this, ever. And replacing those jobs will take people a long, long time. People will likely have to move from Ardmore to find quality jobs.

[amocore]

The irony is that this probably being their lowest personnel cost plant is astounding. Sucks for Ardmore, as they won't be able to replace this, ever. And replacing those jobs will take people a long, long time. People will likely have to move from Ardmore to find quality jobs.

One part of the plant will still be open according to the article, but I do not know how many people will work in this rubber mixing operation.

[cinnamonjock]

About 150 people work in rubber mixing. Also most of those 1400 jobs will be gone by early next year.

The ardmore plant can only make tires up to a certain size--think sedans and hatchbacks. Most domestic producers have heavily focused on trucks and crossovers in recent years. Also, rumor is Michelin is just about finished building a factory in Mexico.

My wife's grandfather retired from there, as well as my uncle and a close friend's mother. It was the best job in town for someone with only a high school diploma. Start out throwing tires and move up. Several times there were talks about unionizing but uniroyal always threatened to shut the place down if that happened.

[biggins]

About 150 people work in rubber mixing. Also most of those 1400 jobs will be gone by early next year.

The ardmore plant can only make tires up to a certain size--think sedans and hatchbacks. Most domestic producers have heavily focused on trucks and crossovers in recent years. Also, rumor is Michelin is just about finished building a factory in Mexico.

My wife's grandfather retired from there, as well as my uncle and a close friend's mother. It was the best job in town for someone with only a high school diploma. Start out throwing tires and move up. Several times there were talks about unionizing but uniroyal always threatened to shut the place down if that happened.

Thanks for this insight. For whatever reason, I thought this Michelin plant was making tires for essentially the GM plant in Arlington, which makes Tahoes, Suburbans, etc. I now see that's not the case. It's nothing short of disappointing that this plant couldn't be retrofitted to do larger tires, especially since the (relatively nearby) Toyota and GM plants in Texas only produce light trucks and SUVs. Was it an issue of the original plant having some built-in obsolescence that couldn't be worked around?

[BoulderSooner]

Also most of those 1400 jobs will be gone by early next year.

so Michelin is lying on their own website?? and in their release?

until mid-2024, when the first wave of staffing reductions will occur. Additional reductions are expected to occur in phases through 2025 as transition plans are finalized.

https://michelinmedia.com/pages/blog...icle/c0/a1319/

that says reductions will begin in mid-2024

[jn1780]

Bridgestone/Firestone gave exactly the same reason for closing the Dayton tire plant in OKC. Too expensive to retool for larger tires. Its sad but not surprising, either you have super advanced robotic machines or you go the offshoring route.

[cinnamonjock]

so Michelin is lying on their own website?? and in their release?

This is what I'm being told by people who work there. Could be a miscommunication, but my understanding is most of those 1,400 jobs will be gone in a few months.

[BoulderSooner]

This is what I'm being told by people who work there. Could be a miscommunication, but my understanding is most of those 1,400 jobs will be gone in a few months.

well that would be unfortunate

[Jersey Boss]

The population of Ardmore is <25k. Of course that includes folks over 65 and undsr 18. Even if some of these employees are from outside Ardmore this is a major blow to Ardmore. Also impacted will be the jobs that support the plant, eateries, and other retail. No telling the effect on housing prices.

[scottk]

The population of Ardmore is <25k. Of course that includes folks over 65 and undsr 18. Even if some of these employees are from outside Ardmore this is a major blow to Ardmore. Also impacted will be the jobs that support the plant, eateries, and other retail. No telling the effect on housing prices.

The most recent local comparison I can think of is when Ponca City (about 25k) gradually lost all of the office and research jobs with the Conoco corporate facility during the early 2000's when they merged with Phillips 66. Over the course of a few years these jobs were moved to Bartlesville and Houston. All that remains in 2023 is a few hundred jobs left in the refinery, which of course can't just pack up and move.

The town at its peak was 26,500 in the nineties, but has maintained about 24,000 since the departure of these jobs. Conoco in Ponca City at its peak probably had around 4000 employees in the various office jobs. The two 8 story office towers on the south end of the city, along with the rest of the corporate complex still remain empty, while the refinery continues to operate in its shadow.

[Bunty]

As isolated it is, I think Ponca City will continue slowly going downhill and won't stay above 24,000. In response, Ponca City offers a $6100 incentive plan to move there. https://www.makemymove.com/get-paid/ponca-city-oklahoma

I wonder how hard it will be for Ardmore to find a new tenant when Michelin becomes vacant. Stillwater eventually got takers for its vacant Mercury Marine and more recently the World Color Press plant, but later became Total Energy Fabrication also closed. But I don't think both plants have as many workers as before under current ownership. Plant closures since Mercury Marine slowed down growth in Stillwater considerably. It's now looking for a taker for the recently closed Armstrong floor tile plant. Stillwater is no longer the blue collar college town like it used to be.

[Dob Hooligan]

I’m not claiming they are the be all and the end all, but this is prime Chickasaw country. No idea what what their relationship with Ardmore is, but visibility is great.

[chssooner]

I’m not claiming they are the be all and the end all, but this is prime Chickasaw country. No idea what what their relationship with Ardmore is, but visibility is great.

I mean, I am very sure Ardmore and them are great. Just not sure what they can do with an old tire plant. Hard to retrofit that thing for anything else.

I am sure some company(ies) will come in and take over that plant. But it is so hard to re-use for anything.

[Jersey Boss]

My guess it will follow the same path Dayton did in OKC. Vacant for a few years then cut up and recycled. If Dayton had no takers with rail and two interstates and being in OKC I don't see why Michelin in Ardmore would have more going for it to a buyer.

[BG918]

The most recent local comparison I can think of is when Ponca City (about 25k) gradually lost all of the office and research jobs with the Conoco corporate facility during the early 2000's when they merged with Phillips 66. Over the course of a few years these jobs were moved to Bartlesville and Houston. All that remains in 2023 is a few hundred jobs left in the refinery, which of course can't just pack up and move.

The town at its peak was 26,500 in the nineties, but has maintained about 24,000 since the departure of these jobs. Conoco in Ponca City at its peak probably had around 4000 employees in the various office jobs. The two 8 story office towers on the south end of the city, along with the rest of the corporate complex still remain empty, while the refinery continues to operate in its shadow.

Duncan and Halliburton is another comparison. Halliburton had their HQ in Duncan until the 60’s and a large accounting and R&D operation until the 2000’s. Essentially only manufacturing is left.

[corwin1968]

Unfortunately, Ponca is a shell of what it once was. Really depressing almost everywhere West of 7th street, or so.

[Pete]

My guess it will follow the same path Dayton did in OKC. Vacant for a few years then cut up and recycled. If Dayton had no takers with rail and two interstates and being in OKC I don't see why Michelin in Ardmore would have more going for it to a buyer.

Since it was a good distribution point for what were mainly car manufactures, perhaps a battery plant would work there.

[cinnamonjock]

The factory is right on the interstate and has a rail spur, though I don't know what condition it is in.

It was really more of a regional employer - plenty of people from neighboring counties worked there. If you've ever been through Lebanon, OK, it has a sign that says "home of Max Langford" whose only claim to fame is he retired from Michelin and they put up a sign after he passed away.

[progressiveboy]

Ardmore at one time was a wealthy old oil town. Lots of money and good quality residents. Nice Jewish population at one time. There is the wealthy old money Dornick Hills Golf and Country Club that started in 1914 and developed by Perry Maxwell, noted golf course architect. Slowly, the town has lost some of it's economic wealth. I hope this town is able to recover. It's location is very strategic. Half way between OKC and Dallas

[BG918]

It's location is very strategic. Half way between OKC and Dallas

Agree, that should help buoy it in the long run. As opposed to a Duncan or Ponca City that are more isolated and not next to an interstate between two growing metro areas.

[cinnamonjock]

A lot of Ardmore's old oil money has passed away in the recent decades and most of their heirs live in Dallas. These heirs then sell off local land within the estates to developers. That's why so much of the property along the interstate is only now being developed.

[Roger S]

We have our meth and gangs to fall back on. We'll be fine.

But seriously this hurts but it's not a game ender for the city... The airpark is expanding and will be providing more jobs... The new casino is going to employ 200-300 people and pull in more people from outside Ardmore to spend money here... Valero has been hiring fairly consistently.

I mean this town survived being blown up. It'll survive the tire factory closing.