France's Compagnie Generale Des Etablissements Michelin Monday said it will invest INR40 billion ($868 million) to set up a new factory in India's southern Chennai city.
The company expects the factory, which will make radial tires for trucks and buses in India and employ 1,500 people, to start production in 2012.
Monday, Michelin signed a pact with the state government of Tamil Nadu to set up the 290-acre plant 50 kilometers north of Chennai, the capital of the province.
"We believe that India holds tremendous potential for the Michelin group in terms of establishing a world class manufacturing facility," said Prashant Prabhu, president, Michelin Africa-India-Middle East.
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.
"An increase in the focus of the government to build better roads to support the challenges of mobility of people and goods in India will result in an ever-increasing demand for radial truck and bus tires," said Philippe Neyrat, commercial director at Michelin's India unit.
Michelin, the world's biggest tire maker by sales, has 68 production sites in 19 countries.
The company expects the factory, which will make radial tires for trucks and buses in India and employ 1,500 people, to start production in 2012.
Monday, Michelin signed a pact with the state government of Tamil Nadu to set up the 290-acre plant 50 kilometers north of Chennai, the capital of the province.
"We believe that India holds tremendous potential for the Michelin group in terms of establishing a world class manufacturing facility," said Prashant Prabhu, president, Michelin Africa-India-Middle East.
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.
"An increase in the focus of the government to build better roads to support the challenges of mobility of people and goods in India will result in an ever-increasing demand for radial truck and bus tires," said Philippe Neyrat, commercial director at Michelin's India unit.
Michelin, the world's biggest tire maker by sales, has 68 production sites in 19 countries.
(Source: http://irco.biz)
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