Thursday June 18, 07:11 PM
Michelin to invest one billion euros in India: report
NEW DELHI (AFP) - French tire giant Michelin (Paris: FR0000121261 - news) , which has announced plans to shed nearly 1,100 jobs in France, may invest more than one billion euros (1.39 billion dollars) over 10 years in a factory in India, an Indian newspaper reported Thursday.
The group declined to confirm the amount but recalled that it had announced last year that it wanted to invest in a factory in India.
The Economic Times report quoted "a person directly involved" as saying that Michelin had sought the Indian government's approval to acquire a 100 percent 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 40 billion rupees in the first phase running into 2016," the newspaper reported.
Michelin, the world's biggest tyre manufacturer, 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 said.
"It was announced in 2008 that we wanted to invest in India to build a factory," a spokeswoman for Michelin said in Clermont-Ferrand, France, where the company is based.
"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."
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