Michelin is postponing plans to expand manufacturing capacity in Hungary because of what it calls “legal and financial uncertainties” in the country where it makes 2m tyres a year, according to the business daily Vilaggazdasag.
“I can’t say today when we may continue our planned capacity expansion, which was aimed at improving the competitiveness of our base in Nyiregyhaza and naturally also would have led to increased headcount,” Paul Young, managing director for Michelin in Hungary was quoted as saying.
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Michelin has invested EUR100m (US$131m) at its plant in Nyiregyhaza, northeast Hungary but says it wants to increase annual capacity from 2m to 8m-10m to remain competitive.
