Michelin evaluating Asian expansion

ERJ staff report (R&PN)

Frankfurt, Germany - Michelin is contemplating the need for an acquisition or acquisitions in Asia in the future to carry out its growth strategy for the region, Michelin executives told a gathering analysts in Frankfurt this week.

While nothing is imminent, Michelin said it will need to supplement its existing manufacturing base in the region if it is to meet its goal of doubling its Asian market share in the next five to six years.

Michelin's next move in the region will be to build a truck and OTR tyre plant in India, a spokesman said. Negotiations are under way there to buy land in India's Tamil Nadu state for a factory, the spokesman said without divulging any other details of the project other than to say the company is ready to break ground as soon as the appropriate piece of land is secured. It typically takes two to three years thereafter to move into production, he said.

Separately, Michelin managing partner Didier Miraton told ERJ that the company is in the final stages of negotiations for the Indian plant and expects to make an announcement in due course. 

Michelin operates six factories in Asia.

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Michelin evaluating Asian expansion from Rubber and Plastics News (a Crain publication)