Michelin to sell Va. cord plant to Hyosung

GREENVILLE, S.C. (Nov. 25)—Michelin North America Inc. has agreed to sell its Scottsville, Va., textile processing plant to Hyosung America Inc., an affiliate of South Korea's Hyosung Corp., for an undisclosed price. Michelin decided to sell the facility to reduce operating costs, said Chairman and President Jim Micali, who emphasized the deal includes employment provisions for all Scottsville workers and a seven-year supply contract for all of the plant's output. The facility, which has 240 employees, produces polyester and nylon cord used in tire manufacturing. Hyosung, which has committed to making a major investment in the factory, expects to begin operating the facility in January. Hyosung claims its Tire Reinforcement Performance Unit has the largest capacity for tire cord in the world. The company makes polyester and nylon tire cord along with steel cord and bead wire.