French tyre major Michelin has committed to make an investment of Rs. 4,000 crore in the State to establish a manufacturing facility in Gummidipoondi taluk of Tiruvallur district.
Prashant Prabhu, Michelin’s president (Africa-India-Middle East), signed a memorandum of understanding with M.F. Farooqui, Principal Secretary (Industries), at the Secretariat on Monday. Chief Minister M. Karunanidhi and Deputy Chief Minister M.K. Stalin were present.
The State Cabinet cleared the proposal two weeks ago. Though it had approved the project about a year ago, clearance was sought again as the group wanted to modify the project, according to an official.
The facility, to be established by Michelin India Tamil Nadu Tyres, would come up in the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial complex over an area of 290 acres. It would provide employment to 1,500 persons, according to an official release.
The investment of Rs. 4,000 crore would be made over a period of seven years.
Michelin is one of the world’s leading tyre manufacturers. It employs 1.21 lakh persons in 19 countries and has 69 plants with a capacity to produce 190 million tyres.
Mr. Prabhu told reporters that the plant would focus on radial truck and bus tyres. It would start operations by 2012 and concentrate on the domestic market. With road and highway infrastructure development accelerating and a number of road development projects under way, the country would have a growing need for radial tyres, he said. India held tremendous potential for his group in terms of establishing a “world-class manufacturing facility.”
Thanking the State government for permitting the company to begin operations, Mr. Prabhu said it was an “honour” for the group to be able to contribute towards the economic development of the State.
Nicolas Beaumont, Michelin-India Programme Director, K.S. Sripathi, Chief Secretary, and K. Gnanadesikan, Principal Secretary (Finance) were present.
