The Michelin Group has signed an MoU with the Tamil Nadu government to set up a new tyre manufacturing facility in Chennai. According to Prashant Prabhu, president, Michelin Africa-India-Middle East, the facility will produce a range of radial truck and bus tyres, focusing on the growing Indian market. “With a manufacturing facility in India, Michelin will be better equipped to cater to evolving customer needs. The plant, with an investment of Rs 4,000 crore, will start production in 2012 and will be spread over 290 acres. It will create 1,500 direct jobs,” he says.
He adds: “Radialisation in India is fast increasing, thanks to the government’s focus on developing the road infrastructure. In India around 10 percent of all heavy vehicles use radial tyres. This is a significant growth considering that five years ago it was less than one percent. In China, the truck and bus radialisation rate has reached more than 75 percent and is growing rapidly. Globally, radialisation in the truck and bus segment is over 60 percent. We consider India as an important and strategic market for growth. We will continue to invest in improving our offerings to the Indian consumer which will help reduce their costs and improve safety.”