LEXINGTON, South Carolina — Michelin North America Inc. is considering a $159 million expansion project at its plant in Lexington, according to a recent filing by Lexington County Council.
Minutes of a Dec. 10 planning meeting show local officials approved a resolution unanimously to enter into talks with Michelin regarding the potential investment in the region.
The contract negotiations, according to the city council, will involve discussion of a fee-in-lieu-of-tax (FILOT) agreement, which typically includes tax incentives for business investments.
Industries that invest at least $2.5 million in South Carolina may negotiate for a FILOT agreement, which can result in a savings of about 40% on property taxes, according to the South Carolina Department of Revenue.
The council's resolution states the "project will benefit the general public welfare of the County by providing services, employment, recreation or other public benefits, not otherwise adequately provided locally, …"
Michelin operates a passenger car, light truck and earthmover tire plant in Lexington, with a nameplate capacity of 288,200 metric tons per year and 3,164 employees. The plant, one of four that Michelin operates in South Carolina, opened in 1981.
Michelin has not commented publicly on the potential investment, other than to say: “We are always considering business development opportunities in the areas where we operate. However, we have nothing to announce at this time.”
In October 2023, however, Michelin indicated that some production capacity at its passenger tire plant in Ardmore, Okla. — which is scheduled to close by year-end 2025 — would be relocated to other U.S. factories, including Lexington.
Michelin last disclosed an investment in the Lexington plant in late 2020, when it pledged $175 million in upgrades to the four plants it has in South Carolina.
