Michelin Aims to Have World’s Largest Tire Production Base with Current Expansion Plans Set for Shenyang, China

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Researched by Industrial Info Resources (Sugar Land, Texas). Michelin, a French tire maker and the world leader in tire technology and innovation, plans to invest $360 million to expand its Shenyang tire production base in northeast China’s Liaoning Province and turn it into the largest in the world.

According to an official from the Liaoning provincial government, Shenyang’s Tiexi District has already signed an agreement with Michelin covering both new truck and sedan tire projects. With the implementation of these two projects, the Shenyang tire production base will be able to produce 12 million tires annually, thus becoming the world’s largest tire production base.

Among the $360 million to be invested, $300 million has been allocated for the sedan tire project, which will produce 10 million tires annually and cover 300,000 square meters of floor space. The remaining $60 million will go to the new truck tire project, whose annual production capacity will be increased by 400,000 tires to reach 1.1 million tires and then 2 million tires in the long term. The new truck tire project will cover 160,000 square meters of floor space.

Michelin’s Shenyang tire production base was established at the end of 1995 with four joint venture plants. It has now developed into a wholly owned foreign enterprise in which Michelin has already invested $150 million.

Michelin entered the Chinese market in 1988. After nearly two decades of development, Michelin now has a joint venture, a research & development center and a head office in Shanghai, as well as a marketing and sales center in Beijing and a wholly owned foreign enterprise Shenyang. Moreover, Michelin has six sales offices all over the Chinese mainland and a representative office in Hong Kong. Currently, Michelin counts approximately 4,500 employees in China.

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