OLSZTYN, Poland (April 16, 2014) — Group Michelin will invest roughly $138 million in its plant in Olsztyn to support an expansion of agricultural tire capacity, according to a statement released by the office of Polish Deputy Prime Minister Janusz Piechociński.
Michelin’s decision to invest in Poland is “evidence of the (firm’s) confidence in the government and local authorities,” Mr. Piechociński said at a ceremony this week at the factory in northern Poland.
The plant, operating as Michelin Polska S.A., originally was part of Poland’s Stomil-Olsztyn S.A. Michelin bought controlling interest in the factory in 1995 and completed the acquisition in 2003.
The Polish official did not disclose any details about the scope of the expansion. The plant, originally built in 1968, also makes tires for passenger cars and light commercial vehicles, trucks, agricultural vehicles, as well as cord fabric and form.
Mr. Piechociński noted in his remarks that the investment is of great importance for Polish industry, creating jobs not only within Michelin but also for subcontractors and suppliers. The company also works with the University of Warmia and Mazury in Olsztyn, Warsaw University of Technology and the Technical University of Gdansk, he added.
The company employs more than 4,000 in Poland and generated about $1.6 billion in revenue in 2012, Mr. Piechociński said.
He did not say what, if any, financial support the Polish government might provide.
Michelin last announced a major investment at the plant in 2005, committing nearly $330 million over three years to expand car and light truck tire capacity there.
Titan International and the United Steelworkers union have petitioned the U.S. International Trade Commission and U.S. Department of Commerce seeking relief from OTR tire imports from China, India and Sri Lanka. What’s your opinion?
|I wholeheartedly support their action – something needs to be done.||
|I think it’s a bad idea that could inevitably tie the hands of domestic tire makers.||
|I oppose any duties against tire importers—they only raise costs for distributors and make it harder to obtain inventory.||
|I’m kind of on the fence and not sure what’s right, but need more information before deciding.||
|I don’t really care whether or not relief is granted.||
|Total votes: 78|