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.