Sep 24 2008
Global tyre manufacturer Michelin Group is planning to invest around €30m to expand production at its tyre plant and adjacent logistics centre in Poland.
The Clermont-Ferrand, France-based group has received the formal go-ahead for its plan to extend its operations in the Warmia-Mazury special economic zone. That will involve it eventually occupying a total of 177 hectares of the zone, according to the Polish Information and Foreign Investment Agency (PALiLZ).
Michelin already has a tyre production line, a plant for production of blends and the logistics centre.
The existing Olszyn facility already makes all group tyre brands including Kleber, Michelin, BF Goodrich, Taurus and Kormoran for car, truck and agricultural vehicles. In addition, it manufactures compounds, textile reinforcing and curing moulds.
The world's second-ranked tyre maker is responding to growing demand in Eastern Europe for original and replacement tyres. In July, it reported replacement tyre demand in that region was up by 5% against a 5.4% drop in Western Europe in the first half of 2008.
A 20% rise in automotive production in Eastern Europe during the period boosted growth in original equipment tyre demand, according to Michelin.
The group operates 68 plants in 19 countries and three technology centres on three continents, and employs globally 115,000 people.