CLERMONT-FERRAND, France (Aug. 28, 2008) — Michelin has chosen not to construct a tire plant in Mexico because of lower demand in regional tire markets, the company announced Aug. 28.
Michelin said in August 2007 that it would invest up to $740 million for a passenger and light truck tire manufacturing site in the state of Guanajuato. Construction was to begin late this year, and production was projected to start sometime in 2010.
The plant was intended to produce tires for the North American market and was expected to employ up to 1,300 people at full capacity.
The tire maker added that productivity gains and additional investments in existing North American production facilities will enable it to respond to continued strong demand for high-performance and large-diameter tires.
Mexico is an important manufacturing base for Michelin, the company said. It has invested more than $200 million in its Queretaro plants over the past two years, creating more than 100 jobs, the firm said.
Michelin's other investment projects in North America — including $350 million being spent to upgrade its manufacturing plants in South Carolina — will continue, the company said. The South Carolina projects were announced shortly before the Mexico facility plan was unveiled last year.