PARIS (July 25, 2005) — Group Michelin is expanding capacity for truck tires at its Tours, France, plant, in part by incorporating capacity from the nearby plant in Poitiers, which will be converted to warehousing.
Michelin will spend $65.3 million through 2007 to expand annual capacity by about 25 percent to more than 1 million units. At the same time, the investment will be focused on high-value products such as super-single and low-profile tires, including the new X-1, a spokesman said.
The project will make Tours the primary source for truck tires in northern and western Europe, the spokesman said, adding that over 50 percent of the production will be exported from France.
This latest investment is in addition to about $180 million the firm has invested in Tours since 2000, he said.
The spokesman said the Poitiers plant will become a warehouse for all kinds of tires, but mostly truck. The work force there would be reduced to about 50. The remaining 300 or so workers are being offered jobs at nearby Michelin plants, including the expanded Tours unit.