Mexico City - Michelin North America Inc. plans to build a $740 million (â‚¬550 million) passenger car and light truck tyre plant in central Mexico to make Michelin-brand tyres beginning in 2010.
Michelin said construction should begin in late 2008 in the state of Guanajuato, Mexico. The investment covers projects through the end of 2014, the tyre maker said. Employment should reach 1300 at full capacity.
The tyre maker did not release expected capacity of the plant but said it â€œwill support the growing North American demand for Michelin tyres.â€
â€œWe are pleased to announce our plans to expand in Mexico, the fastest-growing tyre market in North America where Michelin has experienced considerable success,â€ said Jim Micali, chairman and president of Michelin North America.
The investment tally and job growth is based on finalising agreements with federal and local governments.
Michelin also operates a passenger car and light truck tyre plant, a tread pressing plant and its Mexican headquarters in Queretaro, with about 860 employees.
Guanajuato is northwest of and borders Queretaro.
From Tire Business (A Crain publication)