After reports of Michelin eyeing Mexico for a new plant, the tiremaker has announced it will invest $510 million to build a plant in Guanajuato, Mexico, that will produce high-performance passenger car and light truck tires.
“Michelin is building this plant to respond both to sharp growth in Mexico’s automobile market and to the confidence that the world’s largest car manufacturers have put in us,” said Jean-Dominique Senard, CEO of the Michelin Group. “The largest investment approved by the Group in 2016, the new plant reflects our ability to take advantage of growth opportunities in the dynamic North American market and to make our manufacturing operations more agile by deploying tire ranges that integrate innovative technology.”
Construction on the new 142,000-square-meter plant, located in the city of León, is set to begin in the second half of 2016 – with the first tires expected to roll off the production line in fourth quarter 2018. Initially, the facility is expected to manufacture 4 to 5 million tires annually for original equipment customers in the region and for the North American domestic market, the tiremaker said.
Michelin said most of the tires produced at the plant will be for the original equipment segment, which is why the tiremaker chose a location about three-hours from 18 large car manufacturer locations in Mexico.
After the plant’s construction is completed, the facility will gradually ramp up production, Michelin adds.
“We’re pleased to strengthen our industrial presence in Mexico, thereby being able to satisfy the needs of North American car manufacturers and motorists looking for high-quality tires that are perfectly adapted to their usage conditions,” said Mike Boggs, director of Michelin Mexico.
The new plant brings Michelin’s total North America production facilities to 21 locations.
