Michelin North America has announced it is investing US$22m in its Dothan facility in order to increase output of light truck and SUV passenger tyres.

Michelin said the investment will create about 40 new jobs at the plant. Currently, the Dothan facility employs 560 people.

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“Over the past several years, the Dothan site has demonstrated its ability to deliver the high-quality tyres that consumers demand from Michelin,” said Pete Selleck, chairman and president of Michelin North America. “This investment here is a testament to the trust we have in our Dothan employees.”

Selleck said the investment will include significant equipment upgrades that will result in a 10% increase in production.

“I’d like to thank the Industrial Development Board of the City of Dothan, Ala. for their support,” he said. “This is an exciting time for our Dothan site. The plant just celebrated its 35th anniversary of operation and this project will help position Dothan to continue to be a strategic part of Michelin’s future in the North American market.”

Installation of the upgrades has begun at the facility and will be completed by the summer of 2016.

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