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Michelin North America Announces Expansion Plans in South Carolina

19 August 1999

Michelin North America Announces Expansion Plans in South Carolina; Company Projects Minimum $400 Million in Capital Investments, 400 New Jobs

    GREENVILLE, S.C., Aug. 18 -- Michelin North America, Inc.
today announced that it intends to expand in South Carolina with a minimum
$400 million in capital investments, creating up to 400 new jobs over the next
five years.
    Jim Micali, chairman and president of Michelin North America, said, "Our
development in South Carolina has been steady and extensive for the past 24
years, with total investments over $2 billion.  We're expanding once again to
meet the growing demand for our products, and we've selected this state
because of its continuing pro-business environment and skilled workforce."
    According to Gov. Jim Hodges, "This new investment reaffirms Michelin's
status as the leading international investor and employer in South Carolina.
We are extremely pleased that Michelin has chosen to renew and deepen their
commitment to the Palmetto State."
    The expansion would impact Michelin's facilities in Greenville,
Spartanburg, Lexington and Anderson Counties, plus add a new plant in Anderson
County.
    Michelin intends to spend $90 million and add 100 jobs in a new Anderson
County facility to expand the company's rubber-production operations to meet
future growth needs.  The 750-acre site, known as Lee-Dobbins, is near the
Anderson County Airport.  Site preparation should begin in
January 2000 for Phase 1.  A potential Phase 2 investment of an additional $90
million could mean total employment reaching 200.  Fluor Daniel Consulting of
Greenville, S.C., assisted in the site selection process.
    Michelin will also invest $40 million in its existing Anderson County
plant in Sandy Springs that manufactures various semi-finished products.
    In Greenville County, near Donaldson Center, Michelin plans to spend up to
$90 million for new mold-production and a partial conversion to light-
truck/recreational tire production.  Employment could rise by 100.
    Plants in Lexington County would receive $60 million to increase
passenger, light-truck tire and large-tire production, creating 100 to 300 new
jobs.
    Michelin expects to invest $30 million in its Spartanburg County locations
to expand its truck tire production and retreading operations.
    "There still are certain conditions that must be met before we can proceed
with our investment plans," Jim Micali said.  "Gov. Jim Hodges, Secretary of
Commerce Charlie Way, members of the Anderson County Council and others have
been most helpful, and I am confident that these conditions will soon be
finalized."
    Michelin will move forward with the investments once it obtains:

    1.  Approval by the Anderson County Council of special source industrial
        revenue bond financing and a fee-in-lieu of property tax agreement, to
        take into account the new project in Anderson County; and
    2.  Timely closing of public roads on the proposed new site in Anderson
        County.  Michelin is working closely with state and county officials
        to assure that alternative routes will be in place.

    Michelin's newest investment plans in South Carolina could reach $900
million and 1,400 new jobs over the next 10 years.  That would occur if the
company proceeds with a later investment of  $500 million at the new Lee-
Dobbins site to increase radial tire manufacturing capacity.  Such an
expansion depends entirely on market conditions and has not yet been
determined by Michelin.
    To demonstrate its continuing commitment to build strong partnerships with
minority businesses and to increase diversity hiring, Michelin made two
important announcements today.
    The company has chosen Atlanta-based Jackson Securities Inc., an African-
American owned investment-banking firm, as an advisor in a sale-leaseback of
new tire manufacturing equipment placed in service within the state.
    Michelin also announced plans to form a task force to recommend ways to
recruit and hire qualified ethnic minorities and women for general and
technical positions in its U.S. plants.  The task force will include
leadership representatives from ethnic minority organizations, educational
institutions and Michelin.
    Headquartered in Greenville, S.C., Michelin North America employs 27,000
and operates 23 plants.  Seven of the manufacturing facilities are located in
the state (two in Greenville, two in Lexington and one each in Anderson,
Spartanburg and Winnsboro).  Michelin's North American Research & Development
Center is located in Greenville, and its Proving Grounds and Southeastern U.S.
Distribution Center are in Laurens County.
    Michelin manufactures and sells tires for every type of vehicle, including
airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy duty
trucks, motorcycles and the space shuttle.