Michelin ploughs millions into Polish expansion

17th February 2005, Comments 0 comments

WARSAW, Feb 16 (AFP) - French tyre maker Michelin signed a contract for EUR 253 million (USD 328.6 million) Wednesday with the Polish government to expand its operations in the northeastern town of Olsztyn, PAP news agency reported.

WARSAW, Feb 16 (AFP) - French tyre maker Michelin signed a contract for EUR 253 million (USD 328.6 million) Wednesday with the Polish government to expand its operations in the northeastern town of Olsztyn, PAP news agency reported.

"Tomorrow, we will launch this investment project for EUR 250 million," Michelin Poland's chief executive Pierre Michallat, who signed the contract on behalf of the company, was quoted as saying by PAP. Economy Minister Jerzy Hausner signed for the Polish government.

"This investment is part of the Michelin group's development strategy for Europe, and this part of Europe in particular," Michallat said.

Michelin plans to have its new facility in Olsztyn up and running by 2006, where it produce three million tyres a year, said Michallat. The expansion project would create 520 new jobs.

"This is an important event for Olsztyn and the region, and for Poland, because it involves a large company of international repute, a well-known brand name, and cutting-edge technology," Hausner was quoted by PAP as saying.

Last week, Michelin signed a 99-year lease on a 205-acre (83-hectare) plot of land in Olsztyn.

Since Michelin first came to Olsztyn in 1995, the company has progressively taken over the production sites of Stomil-Olsztyn, one of the main players on the domestic Polish tyre market.

In 2003, Michelin's production sites in Olsztyn showed a profit of PLN 152 million (EUR 38 million) with a turnover of PLN 1.55 billion (EUR 387 million).

Michelin's main competitors in Poland now are Goodyear of the United States and Japanese company Bridgestone, which also has manufacturing facilities in Poland.

© AFP

Subject: French News

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