December 14, 2005

Michelin to Invest $85 Million, Add 70 Jobs at Lexington Earthmover Facility

 

LEXINGTON, S.C. – Michelin will invest $85 million over the next five years at its Earthmover tire production facility in Lexington, S.C. The expansion will increase production of the facility by nearly 50 percent and add approximately 70 new jobs by 2010.

 

“Michelin’s manufacturing operations continue to grow in South Carolina,” said Jim Micali, chairman and president of Michelin North America, Inc. “And Michelin continues to set the pace for investment in the state, investing more than $2.2 billion over the past 30 years and announcing an additional $165 million in the last thirty days. This latest expansion speaks directly to the productivity of our employees and the profitability of our North American Michelin-brand plants.”

 

“Michelin has been an incredibly strong partner for South Carolina in our efforts to create jobs for our citizens. Job creation will continue to be the focus of this administration, which is why we’ll keep working to improve our underlying business climate to make more announcements like this one by Michelin possible across the state,” said Governor Mark Sanford.

 

This latest announcement comes in addition to capacity increases announced in March 2005 and will serve the continued high demand for Michelin® 57- to 63-inch radial earthmover tires for surface mining equipment. The $85 million investment plan has been met with strong support from the Lexington County Council and includes new buildings and substantial equipment additions, as well as more than 70 new employees phased in as the new equipment comes on line. The work will begin immediately.

 

“Demand for Michelin’s radial earthmover tires is breaking every record,” said Prashant Prabhu, head of Michelin Earthmover Tire worldwide. “This expansion increases our capacity for large surface mining tires by almost 50 percent at Lexington and allows us to better serve our customers by adding new capacity as quickly as possible.”

 

The current expansion plan offers the ability for further growth if needed to respond quickly to increasing market demand. The potential second phase could increase Lexington’s production capacity still further over the next several years. This additional phase is contingent on the continued growth of a market that has seen explosive increases in recent years. Michelin has additional earthmover tire facilities in Spain and France and another facility under construction in Campo Grande, Brazil.

 

South Carolina continues to benefit from the growing market demand for Michelin® tires. Lexington is just the latest in a string of investments Michelin has made in the state this year alone. Last month, the company announced that it will invest $80 million over the next six years at its raw materials plants in Anderson County, S.C. In February, Michelin announced the addition of another production line at its Spartanburg, S.C. commercial truck tire plant. The new line is dedicated to production of the X One® wide single tire, whose sales have more than doubled each year since its introduction in 2000.

 

The world’s largest tire maker, Michelin (www.michelin.com) manufactures and sells tires for every type of vehicle, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks, motorcycles and the space shuttle. The company also publishes travel guides, maps and atlases covering Europe, Asia, Africa and North America. Headquartered in Greenville, S.C., Michelin North America employs more than 23,000 and operates 20 plants in 16 locations.