New Delhi: French tyre giant Michelin on Monday said it will invest Rs4,000 crore in setting up a truck and bus radial facility in Tamil Nadu.
The proposed facility, spread over 290 acres, would be constructed at Thervoy Kandigai, near Chennai and will employ about 1,500 workers from local communities, the company said in a statement.
The Michelin Group and Tamil Nadu government have signed a Memorandum of Understanding (MoU) today, it added.
“India holds tremendous potential for the Michelin Group in terms of establishing a world class manufacturing facility,” Michelin President (Africa-India-Middle East) Prashant Prabhu said.
The plant, which would start its operations in 2012, would produce a range of truck and bus radial tyres, the company said without sharing its production capacity.
Earlier in July, the government had cleared a Rs11,000- crore foreign direct investment proposal of Michelin to set up a manufacturing facility in Tamil Nadu.
As per the approval, the company had planned an investment of Rs4,000 crore over a period of seven years and intended to make a further infusion of Rs7,000 crore over a period of three years, after the completion of the initial funding depending on the progress of the project and demand of the tyre market.