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Michelin expands production at Brazil plant for agriculture tires

Brazil: Michelin group, a French tire manufacturer has revealed that it going to start the production of radial agriculture tires at its plant in Compo Grande, Brazil. This move is taken by the company to meet the growing demand of agriculture radial tire in Brazil, keeping in view that agriculture accounts for 22 percent of country’s GDP and Brazil has the largest arable area in the world.

According to the president of company’s business operation in South America, Nour Bouhassoun, the company would be also focussing on agriculture tire sector in next few years. Furthermore, only six percent of agriculture tires sold in Brazil are radial and the company is planning to increasing its production capacity to become market leader in agriculture radial tire segment of Brazil.

The plant in Compo Grande was established 35 years ago and produces tires for passenger cars, light and medium duty trucks.

According to a recent report published by TechSci Research, “Brazil Tyre Market Forecast and Opportunities, 2020”, the replacement tire segment accounted for around 68% volume share in Brazil tire market in 2014. Moreover, replacement demand for tires is anticipated to grow at a faster rate during 2015-2020, as compared to OEM tire demand. As a result, the market share of replacement tire segment is expected to further increase through 2020. High government focus on macroeconomic and infrastructure front is expected to significantly benefit the country’s tire market in the coming years. Few of the leading players operating in Brazilian market are Pirelli, Michelin, Bridgestone, Goodyear, Continental AG and Rinaldi.

As per TechSci Research, Michelin’s expansion plan for agriculture radial tire in Brazil is anticipated to increase the competition in agriculture tire segment of the company and would also enhance the demand for radial tires in Brazil.

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