Michelin steers toward expansion in Poland

11th February 2005, Comments 0 comments

WARSAW, Feb 11 (AFP) - French tyre maker Michelin on Friday signed the lease on a 205-acre (83 hectare) plot of land in the northeastern Polish town of Olsztyn, with a view to expanding its presence there, the town's mayor said.

WARSAW, Feb 11 (AFP) - French tyre maker Michelin on Friday signed the lease on a 205-acre (83 hectare) plot of land in the northeastern Polish town of Olsztyn, with a view to expanding its presence there, the town's mayor said.

"I have signed a lease agreement with (Michelin Poland CEO) Pierre Michallat, which is very beneficial for the French group, for nearly 100 hectares of land next to the already existing Michelin sites in our town," said Jerzy Malkowski, mayor of Olsztyn.

Michelin refused to give details of its plans for the site, but the Polish press has reported that the group plans to invest more than EUR 500 million to expand in Olsztyn.

The 99-year lease is for 205 acres (82.7 hectares) at PLN 100,000 (EUR 25,000) per month, PAP news agency reported.

Malkowski said details of the project would be released next week.

"We agreed that details of the project would be announced on February 16, when Michelin will have signed other documents with the government," he said.

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) for a turnover of PLN 1.55 billion.

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

© AFP

Subject: French News

 

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