Michelin to set up Rs 4k-cr tyre plant

Chennai: France's Michelin Group, the world's leading tyre maker, on Monday said it will invest Rs 4,000 crore for setting up a radial tyre unit near Chennai (50km north of Chennai). It is one of the biggest investments made in Tamil Nadu by a single company.      The global tyre major signed a memorandum of understanding (MoU) with the Tamil Nadu government on Monday for setting up a manufacturing facility at Gummudipoondi in Tiruvallur district. The investment has been committed over seven years. The plant will come up on 290 acres in the district and will employ 1,500 persons. Company officials refused to comment on the capacity of the plant. Michelin makes tyres for automobiles, aeroplanes, trucks and farm equipment. The company has 68 production sites in 19 countries in five continents.      With the investment, Michelin is joining domestic tyre makers like MRF, Apollo, Dunlop and TVS Srichakra in Tamil Nadu. The plant will make tyres for buses and trucks. First tyres would roll out by 2012 and the unit will focus on the Indian market. The total investment is equivalent to the combined investments proposed to be made by two global car makers, Renault-Nissan for a car plant at Oragadam.      "With the development of road and highways, India is on course to offer customers the opportunity to extract full value from radial tyres. We believe that India holds tremendous potential for the Michelin group in terms of establishing a world-class manufacturing facility,'' Prashant Prabhu, president, Michelin Africa, India and Middle East, said after signing the MoU.      "The manufacturing facility will focus on a range of radial\bus tyres. The plant will start operations in 2012 and will focus on the growing Indian market,'' the company said in a statement.      Sources said the Tamil Nadu government is also hoping to get in touch with Bridgestone, the second largest tyre maker, for investment in the state. "Bridgestone had approached us sometime ago. But we are yet to hear from them. We are trying to contact them and find out their plans,'' a source told TOI.