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Leading French tyre manufacturer Michelin has announced to add a new manufacturing location on the globe and come up with a plant in Mexico.

This new manufacturing in the Latin American country will be the tyre maker’s 69th around the world and its 21st in North America. Michelin has proposed to establish the new plant in Leon, in the state of Guanajuato in Mexico. The plant would be producing premium tyres for high-end cars as well as light commercial vehicles.

The new manufacturing facility will see first products coming off the assembly line in 2018 and will be sold in the Latin American market. The facility is built over an investment of 510 million dollars and will see the work getting commenced in a few months’ time from now. The company has a projected production volumes of 4-5 million tyres every year, seeing the high demand of the north American market.

“The largest investment approved by the Group in 2016, the new plant reflects our ability to take advantage of growth opportunities in the dynamic North American market and to make our manufacturing operations more agile by deploying tire ranges that integrate innovative technology,” said Jean-Dominique Senard, CEO of the Michelin Group, which is headquartered in Clermont-Ferrand (France).

The plant will also cater to automobile manufacturers based in the same area. There are 18 car companies which are located very close to the facility of Michelin in Guanajuato. The location of the plant will also allow Michelin to make its products available in the shortest possible time to the end customer. The company has also observed sharp growth in the Mexico automobile market in the recent times.

“We’re pleased to strengthen our industrial presence in Mexico, thereby being able to satisfy the needs of North American car manufacturers and motorists looking for high-quality tires that are perfectly adapted to their usage conditions,” said Mike Boggs, director of Michelin Mexico.

By: Mayank Dhingra

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