French tyre maker Michelin announced its plans to invest nearly $US900 million to build a plant to supply tyres to India's fast-growing automobile market.
The plant will make radial tyres for trucks and buses and will mainly target the India's domestic market.
“We believe that India holds tremendous potential for the Michelin Group in terms of establishing a world-class manufacturing facility,” said Prashant Prabhu, head of Michelin's Africa-India-Middle East division.
He also said that the Michelin Group is investing 40 billion rupees to build the plant at Thervoy Kandigai, 50km north of Tamil Nadu state capital Chennai.
The plant will start operations in 2012 and “will focus on the growing Indian market”, the statement added.
The Michelin Group and the Tamil Nadu state government signed a memorandum of understanding on Monday for construction of the plant.