French media reported that Michelin Group, a world-renowned tire manufacturer, invested 800 million euros. The Brazilian plant, which was built in 2006, will be put into operation in 2012. The new plant is located in Resende, not far from Rio de Janeiro, Brazil. The plant will have 1,500 employees. With an annual output of 10 million tires. The Group believes that its revenue contribution to the South American market is low, and it lags behind tire groups such as Bridgestone, Goodyear and Pirelli, and is trying to redeem the situation.
According to the report, the head of the Michelin Group stated that at present, their production in emerging countries cannot meet the changes in demand. Therefore, they are considering two major projects. One is to build a heavy-duty tire factory in India and the other is to build a tourist vehicle in China. In the heavy-duty tire factory, the investment in the two plants was 800 million U.S. dollars (600 million euros). The group is preparing to increase production capacity in Russia by four times, but the investment should be considered later. In 2010, the Group’s financial expenditures must be focused on ensuring that, despite the fact that the Group’s finances have a shortfall of 700 million euros due to the rise in raw materials, the market conditions in 2010 were significantly better than in 2009, and the decline in the Euro was beneficial to the Group’s operations.
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