Analysts Predict Michelin Will Invest in Chinese Tyre Production
Referring to Michelin’s recent surprise decision to raise 1.2 billion euros of fresh capital, financial analysts at Morgan Stanley have predicted that the company is planning to expand its Chinese tyre manufacturing base, making this operation “a crucial BRIC[k]in Michelin’s future.”
When Michelin announced its plans to raise fresh capital on 28 September the tyre maker did any indications of what it planned to do with the money. This led analysts to suggest that “China will be a major focus for Michelin.” They believe Michelin is looking for “a swift increase in Chinese capacity” from their current level of around 2-3 per cent of output.