Michelin to sell wheel biz to Mefro
PARIS-Group Michelin has agreed to sell its wheel business to Mefro Raderwerk Ronnenburg GmbH of Ronnenburg, Germany, for an undisclosed price.
The sale would comprise four Michelin subsidiaries involved in wheel manufacturing and distribution, which employ 1,800 and generate annual sales of about $400 million. Mefro is considered a leading European maker of steel wheels for industrial vehicles.
The combined Mefro and Michelin activities represent annual capacity for 20 million car wheels, 5.5 million wheels for commercial vehicles and 1.5 million for agricultural and industrial vehicles.
Michelin investing in Polish plant
PARIS-Group Michelin will invest nearly $330 million over three years to expand car and light truck tire capacity at its Stomil Olsztyn S.A. tire plant in Olsztyn, Poland.
The project will raise annual capacity by about 3 million tires, Michelin said, with the first output from the expansion due in March 2006. At full capacity, the expansion will create 520 jobs at the 37-year-old plant, which employs 2,300 currently and produces passenger, light truck, medium truck and bus, farm and industrial tires.
Local media reported Michelin intends to add a logistics warehouse at the site in addition to expanding capacity. The firm earlier this year obtained a 205-acre plot adjacent to the Olsztyn factory.
Nokian speeds up Russian plant expansion
NOKIA, Finland-Nokian Tyres P.L.C. is accelerating the pace of the second phase expansion of its tire plant in Russia, aiming to hit annual capacity of 4 million tires by 2008, a year ahead of schedule.
Nokian's Vsevolzhsk, Russia, plant is now under roof, and initial production will take place later this year, with production targeted at 1.5 million tires in 2006, the company said. The company budgeted $180 million to build and outfit the plant, near St. Petersburg.
The plant initially will make Nokian-branded passenger tires primarily for the Russia market. The plant eventually will be expanded to a capacity of 8 million tires annually.