Michelin Drops Plans for Second Mexico Factory

Plans for a second Michelin factory in Mexico have been shelved due to a decline in North American tyre sales. The manufacturer announced on August 29 its intention to “adjust” production capacity in the region, bringing the proposed facility in Guanajuato state, as announced August 2007, out of step with the company’s current direction. This second factory was to produce tyres primarily for the North American market.

Michelin brings with this news reassurance that Mexico remains an important manufacturing base for the company, which has invested more than US$200 million in its Querétaro plants over the past two years and created more than 100 new jobs. The company also states that its other investment projects in North America will continue. Productivity gains and additional investments in existing North American production facilities will enable Michelin, it says, to respond to continued strong demand for high-performance and large-diameter tyres.