According to documents obtained by Reuters, Michelin has picked up plans to build a $510 million plant in Guanajuato, Mexico, Reuters reports.
The tiremaker’s original plans to build a $740 million passenger and light truck/SUV tire plant in Guanajuato, Mexico, were put on hold in 2008 due to a severe downturn in consumer level tire sales and an industry-wide over-capacity problem.
Michelin has made no official announcement regarding the plant.
“Michelin has a long-standing commitment to strengthening its operations in North America. While Michelin’s interest in expanding in the region has been the subject of speculation in recent months, the company is not announcing any specific details at this time,” the tiremaker said.
According to the documents, Reuters said Michelin will start production of passenger and light truck tires in 2017, and will produce tires for the North American market, as well as some tires for Europe and Asia.
Reuters also reports the new facility will produce 5 million tires a year, with room for expansion to double production by 2020.
Official construction dates have yet to be announced.
