Reuters: Market News: CORRECTED-Michelin to add 500 South Carolina jobs, new plant

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CORRECTED-Michelin to add 500 South Carolina jobs, new plant Apr 10th 2012, 15:30 Tue Apr 10, 2012 11:30am EDT * Michelin adding jobs to meet earthmover tire demand * About 80 pct of tires to be shipped outside U.S. April 10 (Reuters) - Michelin SCA will add 500 jobs in South Carolina as it expands production of tires for earthmovers to keep up with growing global demand. The French tire maker also said on Tuesday that it will spend $750 million to build a new plant in Anderson County, South Carolina, and expand an existing plant in Lexington, South Carolina. The plants are expected to export about 80 percent of their tire production, Michelin North America President Pete Selleck said in a telephone interview. Earthmovers require massive tires measuring more than 12 feet in diameter and weighing more than five tons. The tires are designed to operate for thousands of hours of work and handle the demands of heavy construction and mining. Worldwide demand for such tires is growing, Selleck said, due to rapid expansion in emerging markets and a trend among owners of heavy equipment to upgrade to larger machinery. Michelin, the world's No.2 tire maker behind Bridgestone Corp, recently raised its 2015 profit goal, due in large part to increased demand for larger tires needed for the mining industry. Its customers include equipment manufacturers, such as Caterpillar Inc, and equipment owners who need replacement tires. Michelin said sales of these tires increased by more than 20 percent between 2009 and 2011. Nearly every earthmover tire is sold before it is produced -- which is not the case with every tire in the company's product lineup. "Earthmover tires are a special breed right now," Selleck said. He said Michelin's decision to expand in South Carolina, rather than at existing plants in other markets, is due to a number of factors. Existing infrastructure -- including ports, highways and electricity grids -- played a role in the decision. Also, a pro-business environment in South Carolina and a solid base of experienced workers were determining factors. The company has earthmover tire plants in Romania, Brazil, France and Canada. "We could have built this new capacity anywhere in the world," Selleck said. Michelin has 8,000 employees in South Carolina and has its U.S. headquarters there. Link this Share this Digg this Email Reprints

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