Michelin to build €450m tire plant in Mexico

Clermont-Ferrand, France –Michelin has confirmed its plans to build a tire-production facility in central Mexico to produce “high-end tires” for passenger cars and light trucks.

The group’s 21^st production site in North America and 69^th worldwide will be built in León, Guanajuato state.

Start-up is set for the fourth quarter of 2018.

Construction work at the 142,000-square-metre plant, with an investment of €450 million, is expected to begin in the second half of 2016.

During the initial production phase, the plant is expected to manufacture four million to four million tires a year for Michelin, with production ramping up gradually.

“Michelin is building this plant to respond both to sharp growth in Mexico's automobile market and to the confidence that the world's largest car manufacturers have put in us," said Jean-Dominique Senard, chief executive officer of the Michelin Group.

The investment aims to further tap into growth opportunities in the North American market, according to Michelin.

Most of plant’s high-performance tires will be produced for the original equipment segment.

The location of the facility, according to Michelin, was chosen due to proximity to the production facilities of 18 large car manufacturers with operations in Mexico.

“We’re pleased to strengthen our industrial presence in Mexico, thereby being able to satisfy the needs of North American car manufacturers and motorists,” said Mike Boggs, director of Michelin Mexico.

Michelin currently employs 23,000 people in the US, Canada and Mexico.