Michelin plans over the next five years to invest $ 227 million to its subsidiary Dijia Er Tire Company (TigarTyres), tire productionè’‚åŠ å°”çš®ç½—special plant to expand by 50%, to 12 million / year.
The factory has a history of 77 years so far and was acquired by the Michelin Group in 2005 to produce access-grade tires sold under the Tigar, Kormoran and Riken brands. Michelin said that the tires it produces will supply the rapidly growing markets of Russia, Central and Eastern Europe, Africa and the Middle East.
Michelin said that this investment is in line with its strategy to strengthen the presence of the entry-level tire market, which is expected to grow by 30% globally over the next 10 years. Allegedly, this project will increase the annual tire production capacity of the plant from the current 8 million to 12 million by the end of 2016, and add 700 jobs, bringing the total number of employees to 2,600.
The expansion work is expected to start in early 2013. After the expansion, the plant will be put into production in mid-2015. Michelin did not disclose whether the project needed to add new factories, equipment, etc., nor did it say whether the Serbian side provided financial or logistical support.
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