Michelin Aiming for 15 Million Tyres a Year in Poland

The previously reported Michelin expansion in Poland will see capacity at the company’s Olsztyn plant boosted to 15 million units a year, claims Deutsche Bank’s Equity Research division. This capacity will further be revised in the mid-term to 20 million units, making the facility in northeast Poland the tyremaker’s largest.

The reasoning behind the decision to expand in Poland at the expense of facilities in Western Europe becomes clear when viewing the relative costs of each region. In Western Europe, direct labour costs per passenger car tyre represents approximately 7.5 euros, or 15 per cent of its selling price. In Poland the same tyre can be manufactured for 1.7 euros, less than 4 per cent of the tyre’s retail price.