Michelin is taking an upbeat view on prospects for South America and is planning to continue with all its announced projects for the region, including the construction of a new plant in Brazil.
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The company’s new regional president, Jean-Philippe Ollier, told local media that the investments would take place despite weak sales in the region during the first half of the year.
Ollier said sales declined between 20% and 30% in South America in the first six months of this year compared to the same period last year.
“South America is one of the regions where our market will grow, mainly in Brazil,” the executive told newspaper O Estado de S Paulo.
According to the report, sales improved in the third quarter, but remain lower than in the equivalent periods of 2008 and 2007. “The market will recover in two or three years. We don’t expect a recovery in six months,” Ollier said.
