Michelin North America says it has produced the first tyre on an expanded production line at its Lexington passenger and light truck plant in a US$200m investment.

"This investment allows us to meet increasing market demands for Michelin tires," said Lexington site manager for Michelin North America, Peter Sutton.

"We are very proud to have begun production, in just over 18 months since the announcement of this project."

The Lexington expansion project is part of a US$950 million investment committed to the state of South Carolina that will create up to 770 new jobs. 

Michelin is the largest manufacturing employer in South Carolina with around 8,000 employees. Once fully completed the investment in Lexington will add 270 additional workers to the plant.