CHENNAI, India (Nov. 17, 2009)— Michelin will build an $870 million truck tire plant in southern India in the coming two to three years, according to a memorandum of understanding signed by Michelin and officials for the Tamil Nadu state government.
Michelin has secured 290 acres of land in Tiruvallur near Chennai on which to build the plant, which should begin production in 2012. The project will employ about 1,500, Michelin said.
“With the accelerating development of road and highways infrastructure and the number of ongoing road development projects, India is on course to offer customers the opportunity to extract the full value from radial tires,” said Prashant Prabhu, president, Michelin Africa-India-Middle East, at the signing ceremony. “We believe that India holds tremendous potential for the Michelin group in terms of establishing a world class manufacturing facility.”
Michelin did not disclose the plant's expected capacity. Previously it had said it would also make OTR tires for the mining and other sectors.
Michelin India Pvt. Ltd., based in New Delhi, has operated commercially in India since the late 1990s. Last year the company opened its first TyrePlus distribution center in Tamil Nadu. It expects to open 70 or so TyrePlus centers in the coming three to four years.