With the expected demand from China’s electric vehicle sector and green transformation, French tyre maker Michelin Group says it will continue to expand its manufacturing facilities and produce more tyres by recycling materials in the country.
Upbeat about the Chinese market, the Clermont-Ferrand, France-headquartered multinational company put an expansion project into operation at its Shanghai plant in January. This move will lift the annual tyre production capacity of the plant from 8.5 million units to 9.5 million units.
Florent Menegaux, CEO of Michelin Group, said the group remains committed to introducing its most recent advances in R&D in the Chinese market. Robust demand for innovative products and services among the company’s Chinese customers, and consumers at large, strengthens its dedication to innovation, he said.
Amid the challenges of global economic fluctuations, the significant expansion of China’s new energy vehicles and the sustainable sector has offered substantial business opportunities for global tyre manufacturers. They are committed to actively participating in China’s high-quality development, intensifying R&D investments in a more sustainable and green transformation, he said.
To seize more market share, Michelin introduced its latest tyre, composed of 63% sustainable materials, marking its Asia debut at the sixth China International Import Expo in Shanghai, which was held last year in November.
Michelin has also invested around US$28 million to kick-start a project for the production of 1.3 million passenger car tyres at its plant in Shenyang, capital of Northeast China’s Liaoning province. Once fully completed, the annual production capacity of passenger vehicle tyres at the plant will increase to 17.3 million units.
More than 5.19 million NEVs had been registered in China during the first three quarters of last year, up 40% from the same period last year and accounting for 28.6% of all new automobile registrations, government data showed.
With many countries seeking new ways to boost their economies, Michelin is accustomed to experiencing economic cycles, and the company is not overly concerned about downturns, the French executive said.
Foreign direct investment in China’s manufacturing industry grew by 1.9% year-on-year to 283.44 billion yuan in the first 10 months last year, while that in high-tech manufacturing soared 9.5% on a yearly basis, data from the Ministry of Commerce showed.
Supported by 132,200 employees, nine R&D centres and 67 tyre production facilities across the world, Michelin’s sales revenue grew by 2% year-on-year to EUR21.2 billion in the first three quarters last year.