Michelin starts production at Shanghai tire expansion project

Shanghai, China – Michelin has started production at the second phase of an expansion project at its Shanghai plant, known as the “Magnolia Project.” (ERJ report)

The project, located in the Minhang Development Zone, was officially commissioned on 23 Jan, with the first high-performance green tire – the Michelin Pilot Sport 5E – rolling off the production line, according to a company social media release 23 Jan. 

The Magnolia Project represents a Yuan3.0 billion (€380 million) investment and is classified as a major foreign-invested project at both municipal and district level, said the Michelin post.

The French tire maker described the investment as the group’s first project systematically planned, built and operated under its “future factory” concept.

Speaking at the commissioning ceremony, Ye Fei, president and CEO of Michelin Greater China and Mongolia, said the start-up marked a “key milestone” in Michelin’s long-term development in China and its cooperation with local authorities and industry partners.

The project, he said, reflects Michelin’s commitment to manufacturing upgrades, green transformation and industrial collaboration in the country.

The expansion is focused on 18–24 inch high-performance passenger car tires, with around 70% of output intended for new-energy vehicles, reflecting growing demand for EV and premium mobility solutions in China.

Michelin launched the two-phased “renovation and expansion” project at the Shanghai plant in 2021.

In the first phase, Michelin said it inteded to enhance intelligent manufacturing at the site while producing environmentally friendly tires for the market.

With the both phases now operational, Michelin said the plant has added 1 million tires per year of capacity, lifting total annual capacity to 9.5 million tires.

The number of product specifications has increased by more than 100, bringing the total product catalogue to over 360 items.

Michelin also highlighted the project’s flexible production model, designed to meet demand for “small batches, light inventory, fast response and high matching” in the original equipment market.

According to the group, each tire building machine can produce one tire every 36 seconds, with the ability to run minimum orders of 100 units.

Order delivery cycles have been reduced to around five days, from about 10 previously.

On sustainability, Michelin said the Magnolia Project integrates environmental measures into both infrastructure and energy systems, achieving 100% electrified production and full coverage by clean electricity.

The use of electric curing equipment improves energy efficiency by more than 400% compared with traditional steam curing, it said.

The project also includes Yuan30 million of investment in green infrastructure, covering wastewater, exhaust gas treatment and solid waste recovery, with the plant achieving 100% water recycling.

In terms of digitalisation, Michelin said the site applies AI-based design, manufacturing management and quality inspection systems, shifting operations from “post-event response” to “pre-emptive prediction” through data-driven manufacturing management.

Zhu Haiyan, general manager of the Shanghai plant, said the project was a “key step” in the plant’s transition towards "a future factory model", combining high-end manufacturing, flexible delivery and green, intelligent production to serve the Chinese market more efficiently.