Staff report (TB)
Clermont-Ferrand, France -- Group Michelin is cancelling plans to build a second tyre plant in Mexico, citing lower demand in North America.
Michelin originally announced plans in August 2007 for the car and light truck tyre plant, to be built in Silao, Guanajuato, at a cost of $740 million primarily to supply tyres for North America. Construction on the plant was supposed to have started mid-2008, with production start-up planned for 2010.
Michelin declined at the time to quantify the plant's capacity but said it would be on par with its larger factories in the US, which average about 25,000 units a day.
The tyre maker said productivity gains and additional investments in existing North American plants will enable it to respond to continued strong demand for high-performance and large-diameter tyres.
Michelin has a tyre plant and a tread rubber plant in Queretaro, Mexico, where it has invested more than $200 million over the past two years.
The Rubber Manufacturers Assocation recently forecast that U.S. replacement passenger and light truck tyre demand could fall about 1 and 7 percent, respectively, this year, with original equipment shipments off as well.
From Tire Business (A Crain publication)