MEXICO CITY (Aug. 13) — Michelin North America Inc. plans to build a $740 million passenger car and light truck tire plant in central Mexico to make Michelin-brand tires beginning in 2010.
Michelin said construction should begin in late 2008 in the state of Guanajuato, Mexico. The investment covers projects through the end of 2014, the tire maker said. Employment should reach 1,300 at full capacity.
The tire maker did not release expected capacity of the plant but said it "will support the growing North American demand for Michelin tires."
"We are pleased to announce our plans to expand in Mexico, the fastest-growing tire market in North America where Michelin has experienced considerable success," said Jim Micali, chairman and president of Michelin North America.
The investment tally and job growth is based on finalizing agreements with federal and local governments.
Michelin also operates a passenger car and light truck tire plant, a tread pressing plant and its Mexican headquarters in Queretaro, with about 860 employees.