Michelin expect strong growth in China

According to the Shanghai Daily, Michelin will continue to expand its Chinese venture by investing several hundred millions of US dollars in automobile tyre production plants. Expansion efforts are expected to continue for five years, at which annual production capacity will top several million units of tires, said Eric Jugier, chairman of Michelin (China) Investment Co Ltd. In 2001, Michelin established a joint venture with Shanghai Tire & Rubber with an investment of 200 million US dollars in exchange for a 70 per cent stake.

Michelin also plans to add up to 200 retail shops in China this year. Jugier said he expected Michelin’s business to grow much faster than that of the industry as a whole. The Chinese tyre sector is expected to grow by about 30 per cent annually for the next five years.

In 2003 there was a 36.7 per cent increase in vehicle manufacture and China is expected to produce 125 million tyres in 2004, one-third of which will be exported. .