Michelin invests EUR 170 million in tire factory in Pirot - Jobs for 700 people until 2016

The municipality of Pirot and the Serbian government signed Monday an agreement with the French company Michelin on an EUR 170 million investment in Tigar Tyres factory in Pirot, which will enable creation of 700 new jobs until 2016, it was announced on the website of the Serbian government.

A Memorandum of Understanding was signed by Minister of Economy and Regional Development Nebojsa Ciric, Pirot Mayor Vladan Vasic and Tigar Tyres CEO Eric Faidy, in the presence of Serbian President Boris Tadic.

After signing the MoU, Mr. Faidy said that Michelin's investment would make it possible to boost the tire production in Pirot from current 8 million to 12 million a year until the end of 2016.

- Expansion of the capacity will start early next year, while first tires are expected to roll out of new production facilities in mid-2015 - said Mr. Faidy.

According to his words, a major portion of the production will be exported to the growing market of Russia and countries of former Soviet Union, as well as to central and eastern Europe, Africa and the Near East.

- In this way we are getting ready for the planned 30% growth of this market segment over the next ten years - said Tigar Tyres CEO Eric Faidy.

Minister of Economy and Regional DEvelopment Nebojsa Ciric stressed that the agreement represented the beginning of Michelin's further development in Serbia.

- The government has managed to convince Michelin to choose Pirot as the destination for its new investment. The first phase is expected to bring an investment of EUR 170 million and 700 new jobs for people from Pirot and its surroundings - said Ciric.

He added that the factory was expected to produce up to 20m tires a year in the second phase.

The MoU signing ceremony was also attended by French Ambassador to Serbia Francois Xavier Deniau.