By Aex Kapadia
Michelin is planning to invest more than £600 million in a new tyres manufacturing plant in China within the next two to three years.
The French tyres giant is spending £610 million building the new passenger car and truck tyres factory in Shenyang, where Michelin already has another plant, which will double its annual capacity in China.
Production at the new plant is scheduled to begin in 2012, according to the latest report.
Michelin’s planned investment follows the acquisition of control of Shanghai Michelin Warrior Tire last year when it bought the 30 per cent of the Shanghai-based firm from Double Coin Holdings Ltd and Shanghai Minhang United Development Co. Ltd.
Michelin’s current capacity in China at the two existing plants is estimated to be 28,000 tyres a day.
In addition Michelin also plans to invest £261 million in a greenfield passenger car tyre plant in Resende, Brazil, which will start producing in “early 2012.”
And Michelin has confirmed the details of its proposed greenfield truck and earthmover tyre plant in Chennai, Tamil Nadu, India.