Industry News

Michelin Begins Construction of New Tire Plant in Mexico

Mexico: Michelin Group started construction of its new tire plant in León, Guanajuato located in central Mexico, which is anticipated to become the company’s 69th global facility. The company held its facility’s first stone ceremony along with its key customers, company leaders and government dignitaries.

As per Jean-Dominique Senard, Chief Executive Officer of Michelin Group, "Our actions here today demonstrate our confidence in Mexico's manufacturing environment, the skilled and talented workforce here and the infrastructure necessary to deliver tires efficiently throughout North America. Michelin's customers for passenger-vehicle tires are demanding more and more of our innovative, high-tech tires to meet the performance requirements of the growing market in North America. This plant will improve our capacity to meet those demands, as a key element of Michelin's 'Service to the Customer' initiative in North America and worldwide".

Construction of the new facility is anticipated to start immediately and is expected to be completed by late 2018, as per the schedule. The production capacity of the plant is gradually expected to reach 4 to 5 million tires annually, primarily under Michelin brand for various segments, i.e. ultra-high-performance and high-performance cars, SUVs, light trucks and cross-over vehicles.

The to be launched facility (in Mexico) would be 21st plant site of the company in North America and the is expected to be built on more than 1.5 million square feet on an approximately 98 acres of land in Parque Industrial León-Bajio, or "Pilba" as the industrial park is known locally. This facility is believed to be the French tire manufacturer’s largest investment made in 2016, globally, with an investment of approximately USD510 million, as per the company.

According to a recent report published by TechSci Research, “Mexico Tire Market Forecast & Opportunities, 2021’’, total vehicle production in the country grew at a CAGR of around 6.7% during 2011-2015 and reached to 3.48 million units at the end of 2015. Growth in demand for tires is being witnessed on account of rising income levels, growing passenger as well as commercial vehicle sales and expanding passenger car fleet size in the country. Moreover, with presence of almost all major passenger car and commercial vehicle OEMs such as Toyota, Ford, Chrysler, Fiat, General Motors, Nissan, Volkswagen, Mercedes Benz, Kenworth, Freightliner, International, MAN, Volkswagen, Scania, Dina, Isuzu, Volvo, etc., the demand for tires is being directly influenced in the country’s tire market.

As per TechSci Research, introduction of this new tire plant is expected to increase the company’s market share in Mexico tire market, garnering support from leading OEMs present in the country. Besides that, the company is further expected to strengthen its position in the entire North America, as well.

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