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June 28, 2004 12:00 AM

Michelin Russia plant to open in July

ERJ Staff
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    Groupe Michelin has confirmed that it intends to open its new car tyre plant in Russia on July 7. The factory has been running on a trial basis for the last few months to ensure it can achieve Michelin quality and productivity targets.

    Michelin said the new factory will make 2.1 million car tyres in 2005, rising to 6.5 million over an extended period. A Michelin spokesman said the aim was to reach that figure by 2015 at the latest, but the growth may well proceed faster. Total investment in that period will be about $70 million, said a Michelin spokeswoman. The vast majority of tyres will be sold into the domestic market for original equipment and replacement, said Michelin.

    The European Bank of Reconstruction and Development owns 47.4 of the equiy in the company. The Michelin spokesman said EBRD leaves day-to-day management to Michelin personnel.

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