Group Michelin is investing roughly $105 million in a pair of plants in Romania, to cover the start of production of new tire models at one and expand steel cord output at a second, according to local press reports. The French tire maker is budgeting $37.5 million at its tire plant in Zalau for new models that will target the lower levels of the “intermediate” market segment and will include the Tigar brand.
“This new strategic project of the Michelin Zalau Anvelope plant perfectly marks its 40 years of continuous development. I am very proud that the Michelin team continues to contribute to the group’s growth strategy. The plant is now ready to deal with new challenges by setting up modern equipment, launching new brands and implementing a business model that links the plant directly to the client,” said Sean Parry, the director of the Michelin Zalău industrial platform, according to the Romania Insider.
Michelin produces some 130 tire models at the Zalau facility that are aimed for the Europe, Middle East, and African market. The facility employs 1130.
Michelin also is investing $68 million through 2019 at its steel cord plant in Zalau to boost capacity there by 50 percent to 60,000 metric tons, the company said.
The tire cord factory in Zalau is a strategic unit for Michelin as it supplies tire reinforcement components to the group’s tire factories in Europe, America, and Asia. Some 90% of the factory’s output goes to export.