Michelin to Invest 700 million euros in China Tyre Plant
Michelin is planning to invest 700 million (£610 million; $989 million) in China by 2012 in order to build a passenger car and truck tyre manufacturing plant. Construction of the factory, which will be built in Shenyang where Michelin already has another plant, will double the company’s annual capacity in China. In addition Michelin also plans to invest 300 million euros (261 million; $423 million) in a greenfield passenger car tyre plant in Resende, Brazil, which will start producing in “early 2012.”
Tyres & Accessories first published details of the China investment in its December 2009 issue (subscribers can read this on page 48 of the virtual magazine by clicking here) in an article reporting Michelin’s plans for further BRIC growth. However, the latest details revealed at a Société Générale investor presentation on 2 December add further information, such as the fact that that the company will produce Michelin-branded tyres there and that production is scheduled to start in 2012.
The Michelin’s planned investment follows the acquisition of control of Shanghai Michelin Warrior Tire last year when it bought the 30 per cent of the Shanghai-based firm it didn’t own from Double Coin Holdings Ltd and Shanghai Minhang United Development Co. Ltd. Michelin’s current capacity in China at the two existing plants is estimated to be 28,000 tyres a day.
Michelin also confirmed the details of its proposed greenfield truck and earthmover tyre plant in Chennai, Tamil Nadu, India. According to the company this new factory will be a “world class plant dedicated to the domestic market.” This plant will employ 1500 people and start product at the end of 2012, at a cost of 580 million euros (£505 million; $818 million).
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