French tyre group Michelin said Wednesday it would eliminate up to 2,300 posts in France as it reinforces activities outside its core business.

Michelin said the roughly three-year plan would not involve outright layoffs, but consist of not replacing workers as they retire and offering payouts to others who were willing to leave.

It employs around 20,000 people in France at present.

Competition from low-cost tyre makers has hurt Michelin, which has already reduced its workforce by almost 1,500 since 2017 in France, Germany and the United States.

It pledged to create other jobs while focusing on higher end tyres, and those destined for agricultural, industrial or competition use.

"Michelin is not abandoning France and continues to invest massively there," chief executive Florent Menegaux was quoted as saying in a French-language statement.

The company added that it would focus increasingly on sectors that included hydrogen development, 3D printing, adhesives and plastic recycling.

By 2030, Michelin plans to earn around 30 percent of its revenues from activities other than tyre-making.

tsz/wai/tgb

COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN SCA