French Michelin Group is investing EUR 60 million in its steel-cord factory in Zalau to increase the production capacity by 50 percent until 2019, a press release informs. Following the investment project, 140 new jobs will be created and the production will increase to reach 60,000 tons of steel cord per year by 2019.
The Michelin steel-cord factory in Zalau is a strategic unit for the French group producing wire rope and metal assemblies, all of them vital components in the production of tires. With more than 90 percent of the production of the steel cord being exported, the Michelin steel-cord factory in Zalau contributes to the production of tires in a wide variety of Michelin plants on 3 continents, Europe, America and Asia.
“Over the years, the steel-cord factory played an important role in the growth strategy of the Michelin Group and the very good results supported by a steady progress, great agility and the teams’ expertise have earned the trust of the Group to take on new innovative projects,” Sean Parry, Director of the Michelin Industrial Platform in Zalau said.
According to company’s officials, the plant’s mission is to produce innovative metal cables for Michelin’s tires product line, ensuring quality products, in compliance with international standards at a competitive cost, contributing therefore to the Group’s growth.
“Thanks to the commitment of the entire team, with this project, the plant will support even better the Group growth ambitions by providing steel cord to key Michelin factories around the world. I am glad that this project will create new jobs and will contribute to the community development in Zalau,” Parry stated.
Michelin Group has started its industrial activity in Romania in August 2001, investing more than EUR 400 million over the years in plant modernisation. Currently, Michelin Romania has about 3,300 employees, three factories, two in Zalau and one in Floresti, a commercial network and a Center of Excellence and Shared Services, which provides support services to various entities Michelin in Europe. Also, the commercial activities of the Group for Central and Eastern Europe are coordinated from Bucharest (12 countries).
Michelin Zalau steel-cord was built as green-field investment by the company in 2003-2004. The factory, with 350 employees, provides steel cord, one of the most important components of the tire carcass for factories producing truck and passenger tires worldwide.