March 29 (SeeNews) - French tyre maker Michelin said on Wednesday it plans to invest 60 million euro ($65.1 million) in its metallic cord factory in Zalau, in northwestern Romania, in order to increase the factory's output by 50% by 2019.
The investment will help create 140 jobs and boost output to 60,000 tonnes of metallic cord per year, Michelin said in a press release.
Michelin Cord Zalau, which employs 350 people, is a strategic unit for the group, as it produces metallic cord and metal structures, which are vital components in tyre production, the company added.
The factory exports over 90% of its output to countries in Europe, America and Asia.
"The plant will support even more the growth ambitions of the Group by providing metallic cord to Michelin plants worldwide. I am pleased that this project will create new jobs and will contribute to the development of the community in Zalau," Michelin Zalau Industrial Platform director, Sean Parry, said.
Michelin started operations in Romania in 2001 and has invested over 400 million euro since to modernize its plants. It currently employs 3,300 in three factories, a commercial network and an excellence center.
Besides the metallic cord plant, Michelin operates two tyre-production units in Romania, in Zalau and in the southern town of Floresti.
In 2014, Michelin closed its truck tyre plant in Hungary's capital Budapest and relocated part of its production to Zalau.
($=0.9209 euro)
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