ERJ staff report (DS)
Greenville, South Carolina -- Michelin
North America Inc. (MNA) will invest $750 million in South Carolina
to build a second OTR tyre plant and expand its existing OTR tyre
plant in Lexington.
The new plant will be built on land near Starr, in Anderson
County, to the southwest of Greenville South Carolina. Michelin already has a
rubber compounding/calendering plant there and hundreds of acres of
land on which to build.
Michelin did not disclose the size or capacity of the new plant or
the size of the expansion at the Lexington plant, where the company
has been making OTR tyres since 1997. It invested $85 million in
2005-09 to boost capacity there.
Michelin did not disclose the timetable for the project.
Speaking at a press conference in Greenville this morning, MNA
Chairman and President Pete Selleck said there is â€œunprecedented
demandâ€ for Michelin earthmover tyres throughout the world, and
called the decision to invest in South Carolina a â€œtribute to the
productivity of our employees and the pro-business environment in
The two projects together will create up to 500 jobs, boosting
Michelin's employment in the Palmetto State to more than 8,000.
â€œMichelin intends to maintain and strengthen its leadership in
all its speciality businesses, especially earthmover radial tyres,â€
said Jean-Dominique Senard, managing general partner of Michelin, who
noted the global market for earthmover tyres grew by more than 20
percent from 2009 to 2011.
â€œThis new facility will help us meet sustained demand while also
attaining our growth objectives for 2015,â€ he said. Mr. Selleck
added: â€œNearly every earthmover tyre is sold before it is
Michelin operates six other earthmover tyre plants globally:
Waterville, Nova Scotia; Campo Grande, Brazil; Le Puy and
Montceau-les-Mines, France; Vitoria, Spain; and Zalau, Romania.
South Carolina Gov. Nikki Haley called Michelin â€œone of our
finest corporate citizensâ€ that has been â€œpart of the economic
and social fabricâ€ of the state for decades.
Speculation about the expansion surfaced in February when it came
to light that officials in Anderson County-where Michelin has two
rubber-mixing/calendering facilities and more than 900 employees-were
pitching the tyre maker with an investment incentive package known as
The package would provide tax relief and other incentives for
creating at least 125 jobs and investing a minimum of $150 million,
according to descriptions of the program. The incentives scale up
with greater investment and more jobs.
At that time the tyre maker declined to comment on its plans,
saying: â€œIncentives such as those being considered by Anderson
County pave the way for the potential of future investments down the
road. While Michelin routinely considers a variety of business
opportunities, we have nothing to announce at this time.â€
Since then South Carolina media have reported on a number of other
state and local agencies coming forward with investment incentive
packages of their own.
The investment further cements Michelin's presence in South
Carolina, where it operates four tyre plants, the two rubber
mixing/calendering units, its headquarters, a
research-and-development campus and a test track in South Carolina,
employing more than 7,700 in the state.
Overall, MNA has 18 plants in 16 locations throughout the
continent, employing 22,270 and generating $7.25 billion in annual
sales, according to company information.
In 2007 Michelin had budgeted $740 million for a car/light truck
tyre plant in Mexico to be built in 2008-10, but later it canceled
the project in the wake of the global economic slowdown.
Capacity expansion projects of the past decade in South Carolina
- $200 million through early 2013 at its passenger/light truck tyre plant in Lexington, S.C., to boost capacity, primarily for larger diameter performance tyres for SUVs and crossovers;
- $90 million during 2008-09 to upgrade equipment and expand production capacity at its Lexington passenger and off-the-road tyre operations;
- $110 million in 2007-10 to upgrade and expand its passenger/light truck and OTR tyre plants in Lexington;
- $240 million in 2007-10 for increase capacity of semi-finished materials at plants in Sandy Springs and Starr and to add capacity for X One wide-base truck tyres and military tyres in Spartanburg County;
- $85 million in 2005-2010 to boost earthmover tyre capacity at Lexington; and
- $80 million in 2005-07 to upgrade equipment and expand capacity at rubber materials plants in Starr and Sandy Springs.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Press release from Michelin (French language)
Above story auto-translated (from French language)
Press release from EU (English language)
Press release from North America (English language))