Michelin may invest over EUR1bn (US$1.39bn) over 10 years in a factory in India, a local report said.
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Asked by French news agency AFP to confirm the Economic Times of India (ETI) report, Michelin, which has announced plans to shed nearly 1,100 jobs in France, declined to confirm the amount but noted it had announced last year that it wanted to invest in a factory in India.
The newspaper quoted “a person directly involved” as saying that Michelin had sought the Indian government’s approval to acquire a 100% stake in a new company, Michelin India Tamil Nadu Tyres, formed in April 2009.
“This company will set up the proposed greenfield unit, which would absorb investment worth INR40bn in the first phase running into 2016,” the ETI said.
Michelin was negotiating with the Tamil Nadu regional government for land on which to build its future manufacturing unit, where it could create between 1,500 and 2,000 jobs, the paper added.
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By GlobalData“It was announced in 2008 that we wanted to invest in India to build a factory,” a Michelin spokeswoman told AFP. “For us it is essential to be present in this market.”
But she said nothing had been finalised yet.
“Our teams are working with the authorities of the state” of Tamil Nadu, she said, adding that “no land been bought.”
