Michelin to build new tyre plant in Mexico

Michelin has announced plans to build a new production facility for passenger car and light truck tyres in León, Guanajuato state, Mexico. The first tyres are expected to come off the production line in the fourth quarter of 2018. According to Michelin, the new plant is the group’s 21^st in North America and 69^th worldwide.

The construction of the 142,000 m² plant, which represents an investment of EUR 450 million (~ USD 510 million), is expected to begin in the second half of 2016. Once completed, the plant will be ramped up gradually: During the initial production phase, it is expected to manufacture four to five million tyres a year for Michelin customers with plants in the region as well as for the North American domestic market. Most of these tyres will be produced for the original equipment segment. According to the company, the plant's site was chosen because it is conveniently situated in short distances to the production facilities of 18 large car manufacturers with operations in Mexico.

“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, which is headquartered in Clermont-Ferrand, France. “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 tyre ranges that integrate innovative technology.”

“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 tyres that are perfectly adapted to their usage conditions,” said Mike Boggs, director of Michelin Mexico.

Michelin has been present in North America since 1950 and currently employs 23,000 people in the USA, Canada and Mexico.