The Economic Times newspaper states a person directly involved in the transaction informed it that the tyre major has sought government approval to acquire a 100% share in Michelin India Tamil Nadu tyres, a company formed in April 2009. This company will be responsible for establishing a greenfield production facility; the site will be set up with an Rs 40 billion (£507 million) investment in the first phase, which runs until 2016. This first phase operation is anticipated to create 1,500 jobs, and eventually half the factory’s output will be exported.

Michelin has been negotiating with the Tamil Nadu state government to procure land for the project. It wants to set up a plant on 290 acres in an industrial park developed by the government run State Industries Promotion Corporation of Tamil Nadu. Further down the track, a second phase to the plan may create an additional 500 jobs. “The company may ramp up investments by another Rs 3,000 crore (£380 million) after the first phase,” an unnamed sourced told The Economic Times. (Tyres & Accessories/Staffordshire, U.K.)