TYRE-MAKER Michelin will have two factory shutdowns in the space of three months after seeing sales decline.

For the first time the firm, which employs 1,200 workers in Campbell Road, Stoke, is set to close its plant over Christmas and the New Year.

The factory will also close for a weekend later this month because it is accumulating too much stock.

The changes will also see a minority of production staff miss out on four shifts before Christmas.

Workers will be paid by the company, but then expected to repay the hours by working extra next year.

The firm has also cut 14 agency jobs. The temporary staff, who had been working in production and warehousing, have been released after the company encountered falling demand.

Site manager Peter Marsh said: "There is a very small number of people in relation to the entire site who will be affected.

"The global economy is starting to have an impact across Europe, and we needed to make adjustments to control the amount of stock we are holding.

Michelin bosses have held talks with the Transport and General Workers' Union (T&G), a division of Unite, over its proposals.

The Campbell Road plant operates seven days a week on morning, afternoon and night shifts but it will close between December 24 until January 2.

Rob Taylor, pictured, T&G convenor at the Campbell Road plant, said the company's 45 variable hours workers will also lose four shifts across the winter as part of the proposals.

He said: "I am frustrated and concerned about this, but I have been in talks with the company all the way through the process and they have been very receptive to working with the trade union.

"This sort of thing is happening right across Europe. It is not just Michelin – Pirelli and Goodyear have gone through the same."

The changes come after Michelin's share price on the French stock exchange has plummeted by more than 58 per cent in the past year.

Shares have fallen more than 10 per cent this week, despite managing partner Michel Rollier promising to investors on Wednesday he would improve competitiveness and reduce costs.

He said Michelin is faced with unprecedented increases in the cost of raw materials, energy and logistics and plans to cut spending by up to £1.3 billion by 2010.

The Sentinel reported yesterday that Sandyford pottery manufacturer Churchill China was making up to 40 redundancies, after Barlaston ceramic giant Wedgwood revealed it was axing up to 250 staff.

Car manufacturer Bentley has had to cut production of its Continental series in Crewe because of falling demand.

All say they are struggling against a dip in consumer spending, while the cost of raw materials has risen sharply.