Michelin Romania Truck & OTR Tyre Production up 23%.

Michelin’s subsidiary in Romania, Michelin Silvania, has indicated it expects production at its facility in the city of Zalau will rise by 10 per cent this year, following an increase of 23 per cent during 2006. The factory, which focuses on the production of truck and OTR tyres, currently has an annual output of 600,000 units

Speaking to local media, factory manager Jana Popa painted an upbeat picture of the coming year. “We have already conquered the market of tyres for agricultural equipment, heavy vehicles and lorries, which will ensure an over 10 per cent increase in the volume of our production, while at the same time doubling the volume of semi-finished products exported to Eastern Europe,” she said. “We are also relying on the fact that we have regular clients buying our tyres and demand on the market is currently witnessing an upward trend.”

The Zalau factory, acquired from the Tofan group in 2001, produces tyres for lorries under the partner brands Taurus, Kormoran and Riken, as well as Michelin-branded industrial tyres. In 2006 the plant also began supplying semi-finished products to be used in the manufacture of tyres. According to Ms Popa, semi-finished products prompted a 40 per cent boost in turnover. “Until 2005, we manufactured semi-finished products exclusively for our own use. However, last year we began to make these products for customers in Eastern Europe as well,” she explained.

Company representatives did not wish to specify the exact turnover registered by the Zalau-based plant. However, in 2006, Michelin Romania’s consolidated net turnover exceeded 260 million euros, with the estimated growth for this year standing at 20-25 per cent.

“Our Michelin-branded tyres are destined for an international market, which makes Silvania a unique producer within the Michelin Group, with the remainder of brands being dedicated to the European market,” Ms Popa added, commenting that says Romania has become a hub for Michelin’s Southeast Europe operations. The company sells the majority of its products to Bulgaria and to Balkan countries belonging to the former Yugoslavia.