Michelin, one of world’s largest tyre makers, has planned to set up a manufacturing facility in Mexico. It would be company’s 21st manufacturing unit in North America and 69th around the world. Proposed to be set up in Leon, Guanajuato state, Mexico, the plant would be used to produce tyres for high-end cars and light commercial vehicles.
The construction for new facility would commence in a few months from now and Michelin aims to start production by 2018. A majority of the tyres would cater to the Latin American market. Incorporating an investment of USD 510 million, the facility would produce 4-5 million tyres every year.
Jean-Dominique Senard, CEO, Michelin Group, said, “The largest investment approved by the Group in 2016, the new plant reflects our ability to take advantage of growth opportunities in the dynamic North American market and to make our manufacturing operations more agile by deploying tire ranges that integrate innovative technology,”
Michelin intends to cater to the existing 18 car companies located in Guanajuato. Strategic location of the manufacturing unit would allow Michelin to supply tyres to customers in least possible time. Mexico was chosen after a great deal of deliberation and analysis. A prominent factor in the favor of Mexico was the sharp growth in the automobile sector in the country.
“We’re pleased to strengthen our industrial presence in Mexico, thereby being able to satisfy the needs of North American car manufacturers and motorists looking for high-quality tires that are perfectly adapted to their usage conditions,” said Mike Boggs, director of Michelin Mexico.