France’s Michelin Monday said it will invest 40 billion rupees ($868 million) to set up a new factory in India’s southern Chennai city.
Michelin has secured 290 acres of land in Tiruvallur near Chennai on which to build the plant, which should begin production in 2012. The project will employ about 1,500, Michelin said.
“With the accelerating development of road and highways infrastructure and the number of ongoing road development projects, India is on course to offer customers the opportunity to extract the full value from radial tires,” said Prashant Prabhu, president, Michelin Africa-India-Middle East, at the signing ceremony.
“We believe that India holds tremendous potential for the Michelin Group in terms of establishing a world class manufacturing facility.”
The rise in demand for automobiles has prompted several Indian and foreign tire makers to invest in the country. These companies are betting not only on the increasing demand in the local market but also want to use the low-cost manufacturing base in India for exporting tires
Michelin, the world’s biggest tire maker by sales, has 68 production sites in 19 countries.
Related articles by Zemanta
- Michelin to Build Factory in India (online.wsj.com)