Michelin doubles tyre production at Floresti plant

Michelin Victoria Floresti, the tyre factory located in Prahova county and owned by French giant Michelin, will double production capacities over the next two years, from 4 million units at present, in the wake of investments started in 2004.
So far, investments in the upgrade of plants that Michelin Romania bought from Tofan group in 2001 amount to more than 220 million euros, after an annual development programme was implemented worth 30-40 million euros.
“Production will double over the next 2 years and this is the paradox of a process of technological change done as we go. The plant has been, over the past three years, and will be, over the next two years, an under construction site,” stated Carmen Petcu, general manager of Victoria Floresti plant.
In 2004, the plant was solid enough in its production of tyres to enter the next stage of development, which entailed the gradual replacement of 60% of manufacturing equipment. “(…) I believe the plant integration process is now complete,” said Petcu.
In the wake of the new technological changes, the plant’s product portfolio has shifted towards tyres with a 15-inch diameter, which accounts for around 50% of production, as well as tyres with a 16-17 inch diameter.
At the same time, the plant continues to produce tyres branded as Michelin, the premium brand of the group, and as Kleber and Kormoran, the last of which will be fitted to Logan cars.
For Automobile Dacia, Michelin also produces the Michelin Energy III tyres for the Logan Eco 2. Deliveries to the Mioveni plant account for 14% of production, namely around 560,000 units per annum, whilst the remaining production is exported.
In parallel with the replacement of equipment and modernisation programmes, the plant has also invested in training around 1,800 personnel, which tripled productivity.
Petcu believes that doubled production does not require a correlated increase in the number of employees, with 100-150 employees earmarked for recruitment, per annum, on top of 2007.
Production is expected to increase in the wake of newly installed capacities, without the introduction of any new facilities.
The general manager believes that besides the plans to modernise facilities, the plant’s objectives are to improve transport conditions or build a cafeteria to serve workers from plant’s 3 shifts.
Michelin group, which also owns a facility that manufactures tyres for 4X4 vehicles and a metallic cord plant in Romania, generated turnover worth 306m euros in 2006, up 52% year-on-year.
Michelin’s main rivals on the tyre market (estimated at 2.2 million units in 2007) are Continental, whose activities are concentrated in the western part of the country, and Pirelli, located in Slatina.

Michelin plant
Will double production capacities over the next 2 years, from 4 million units at present, in the wake of investments started in 2004.
In parallel with the replacement of equipment and modernisation programmes, the plant has also invested in training personnel, which tripled productivity.
Its current objectives are to improve transport conditions or build a cafeteria to serve workers from plant’s 3 shifts