Intermediate segment tyre production to benefit from Michelin investment in Romania

An investment of 33 million euros is planned for the Michelin factory in Zalău, Romania in order to equip it to produce commercial vehicle tyres for the intermediate segment of the market, including Tigar brand products. In a press release, Michelin shared that the investment will lead to 100 new jobs at the plant by 2021, increasing the facility’s workforce to more than 1,200. This latest investment follows Michelin’s decision to invest 60 million euros in its tyre cord facility in Zalău.

The Zalău Anvelope factory currently produces approximately 130 tyre models for Michelin’s Taurus, Kormoran and Riken brands. As well as being sold within Europe, these are exported to markets in Africa, Asia and the Americas. With the investment, Zalău Anvelope will become the only Michelin plant in Europe manufacturing specific new tyre models for the lower level of the intermediate market segment.

In a Romanian language statement issued by the tyre maker, Michelin Zalău site director Sean Parry commented that the Zalău Anvelope plant is being made ready for new challenges through the installation of new equipment, the launching of new brands and the setting up of a business model that creates a direct link between the plant and its clients.

The 60 million euros earmarked for the neighbouring tyre cord factory, which opened in 2003, will cover a project to lift production by 50 per cent over the coming two years. The plant currently exports around 90 per cent of its output to Michelin factories all over the world.

Michelin isn’t the only tyre maker investing in Romania. In the second half of last year, Pirelli announced an intention to invest approximately 200 million euros in its Slatina plant through to 2021 in order to, amongst other things, increase annual production capacity from 10 million to 15 million units. Continental is also recruiting around 1,500 new workers within the country this year, however the primary focus is on bringing new talent into the company’s non-tyre businesses there.