Michelin to set up $1 billion tyre plant near Chennai

December 6th, 2010 - 9:28 pm ICT by IANS  

New Delhi, Dec 6 (IANS) French tyre major Michelin will set up a manufacturing plant near Chennai with an estimated investment of over $1 billion, government and company officials said Monday.

“Michelin is making $1 billion investment in tyre production facilities. The plant will be located near Chennai,” said Commerce and Industry Minister Anand Sharma.

Michelin, the world’s second largest tyre maker, Monday signed a memorandum of understanding with the Tamil Nadu government for setting up the plant.

“The company will start work on the new manufacturing unit next month,” Prashant Prabhu, president of Michelin group for India, Africa and Middle East, told reporters after signing the agreement.

“It will deliver to customers in India a significant gain in terms of logistics and fuel efficiency without discounting safety and longevity,” said Prabhu.

He said Michelin will manufacture radial truck and bus tyres in its Indian unit. The new plant will provide jobs to over 1,500 people. The production is likely to start in 2012.

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