Michelin planning to expand its production facility in Mexico
Mexico: The renowned tire brand, Michelin’s US
based subsidiary, Michelin North America Inc. is planning to build a
manufacturing facility in the Mexico. The investment in the construction of the
plant is estimated to be worth USD510 million. The facility is likely to
operate on a production capacity of nearly 5 million tires annually, however,
the production at the plant would be hiked and expanded to double its
manufacturing by the end of 2020. The facility is expected to be built in Central
Mexico in the state of Guanajuato, wherein, the production is forecast to
initiate by next year. The plant would excel in the production of passenger and
light truck tires for the entire North American, European and Asian markets.
A
Michelin spokesman also stated that the US based subsidiary of Michelin is
planning to strengthen its operations in the North American market since a long
time. As per the, International Organization of Motor Vehicle Manufacturers, Mexico
was reportedly, the seventh largest vehicle manufacturer worldwide, due to the factors
such as low labor cost in the country, free trade agreements and its close proximity
to the United States. The company, Michelin already has its plant located in
the state of Queretaro in Mexico.
According
to a recent report published by TechSci
Research, “Mexico Tyre Market Forecast and Opportunities, 2020”, with
a motorization rate of more than 290 vehicles per 1,000 individuals in 2014,
the Mexico automobile market offers a huge growth potential, thereby promising
significant demand for tyres in the country in coming years. Owing to expanding
automotive fleet size and increasing sales of vehicles, along with rise in the
production of automobiles, the Mexico tire market is expected to hasten in
coming years.
As per TechSci
Research, Michelin is already a known brand for tires
across the entire North America. However, by expanding its production facility
in Guanajuato, Mexico, Michelin would further,
able to enhance its share not only in the country but in the entire North
American market. Moreover, the expansion would assist the company to tap its
market potential, further in Mexico.