ERJ staff report (DS)
Clermont-Ferrand - Michelin is adding capacity for car tyres at the Tigar Tyres plant in Pirot, Serbia. The project will add 4 million entry-level car tyres annually; represents an investment of euro 170 million and will add 700 jobs between now and 2016.
A memorandum of Understanding signed earlier today between Tigar, the Serbian authorities and the City of Pirot calls for increasing production capacity at the plant from 8 million tyres in 2012 to 12 million tyres at year-end 2016.
Work to expand the plant is expected to begin in early 2013 and the first tyres should roll off the new production lines in the middle of 2015. Most of the tyres produced will supply the fast-growing Russian and CIS markets, as well as markets in Central and Eastern Europe, Africa and the Middle East.
Overall, the project will represent an investment of â‚¬170 million for the period 2012-2016. Over the long term, the new unit will lead to the creation of 700 jobs in Pirot.
This investment project is in line with Michelin's growth strategy as it enables the Group to strengthen its offering of entry-level tyres. Over the next ten years, this market segment is expected to grow by 30 percent worldwide. The production capacity to be added in Pirot will enable Michelin to bolster its positions in this promising market segment, thereby helping the Group to attain its objectives.
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Press release from Michelin