New Michelin Shenyang plant will replace current one

ERJ staff report (TB)

Shenyang, China -- Group Michelin's new $1.46 billion tyre plant in Shenyang, expected on-stream by late 2014, will replace a factory Michelin opened in the northern China city 15 years ago, the company said at the new factory's recent ground-breaking.

Michelin has selected a site in Shenyang's Economic and Technological Development Zone for the new plant, which is expected to have annual capacities of 10 million car tyres, 1.8 million truck tyres and 295,000 retreads with 1,500 employees.

Michelin's local subsidiary, Michelin Shenyang Tire Co. Ltd., said it will move production from the existing factory to the new facility in an “environmentally friendly way” after the new plant's completion. As part of its reasoning, Michelin cited the “accelerating urbanisation” of Shenyang City.

Michelin even calls the event the “High Performance Radial Tire Moving, Reconstruction and Capacity Expansion Project” and said the move demonstrates its “firm commitment” to the China market.

“China now has become one of the more important markets for Michelin,” said Jean-Dominique Senard, managing partner of Michelin, at the cornerstone-laying ceremony. “…the new factory in Shenyang will enable the company to meet the diversified demand of local consumers, especially in the high-performance sectors.”

Michelin also said it will use its latest technologies and production processes in the factory, including a fully automated tyre-building process and a “one-time” mixing process that will reduce energy consumption. The technologies employed will “significantly reduce” the plant's CO2 emissions, Michelin said.

Tyres built at the new plant will be lighter, thus reducing raw materials usage, while maintaining the same loading and speed performance ratings, Michelin said.

Michelin built the current Shenyang plant in 1995-96 for $30 million in a 90-10 joint vneture with local manufacturer Shen Yang Tire. The plant's capacity for car and truck tyres is 8,000 units a day.

Michelin's other plant in China is its Shanghai Michelin Warrior Tire car tyre unit in Shanghai.

From Tire Business (A Crain publication)