VAC, Hungary—Michelin is expanding and modernizing its Vac logistics center, according to a news release from the tire maker.
The new unit will open officially on Jan. 1. The $7.7-million investment includes the building of a new office and the expansion of a production hall from 215,000 square feet to 323,000 square feet.
The center will serve as a distribution unit to 15 European countries in the region, namely Czech Republic, Albania, Austria and Bulgaria.
Speaking at thec opening ceremony last week, Robert Szabo, head of Michelin's Vac logistics, said that the center will become a key distribution unit for Michelin.
According to Szabo, the center will have a wide range of products handling more than 3,000 tires, from truck and agricultural tires to earthmovers.
Szabo said the expansion will allow traffic at the site to triple as of next year.
Michelin has four sites in Hungary. The Vac logistics center is in contact with the passenger tire factory in Nyíregyháza, which manufactures high-tires.
In March, the French tire maker announced it was implementing a $53-million expansion on the factory.