Tyre manufacturer Michelin has announced plans to significantly boost production at its plant in the Serbian town of Pirot.
On Monday (2nd April), representatives of the French group and Serbian authorities signed a memorandum of understanding which will see Michelin invest 170 million euros (£141 million) in its Tigar Tyres subsidiary plant.
The facility is set to produce eight million tyres in 2012 but this figure is expected to grow by 50 per cent over the next four years to 12 million tyres.
Work to expand the plant is set to begin in early 2013, with the first economy tyres under the Tigar, Kormoran and Riken brands set to be produced in the middle of 2015.
Serbia's minister of economy and regional development Nebojsa Ciric, Pirot mayor Vladan Vasic and president of the Tigar Tyres' managing board Eric Faidy all signed the memorandum of understanding.
A total of 70 per cent of new capacity added to Michelin's production plants over the next four years is set to come in new and emerging markets.
Posted by Danielle Barge