Michelin delays investment in Hungary over uncertain economic environment
French tyre maker Michelin is postponing a planned capacity expansion in Hungary because of the uncertain economic environment, Michelin Hungaria managing director John Young said in Wednesday’s issue of Vilaggazdasag.
Mr Young said going ahead with the planned capacity expansion, which would create a significant number of jobs, had come into question because new taxes and new laws do not make the economic environment in Hungary predictable.
Michelin started making custom-size and high-performance tyres in Nyiregyhaza (NE Hungary) in 2005. It has invested more than EUR 100m at the base over the past five years. The unit received a 5% workplace creation subsidy for the developments until 2011, after raising headcount by 217.
At present, 1,050 people work at the plant, nearly all of them employees.
Michelin Hungaria’s revenue rose more than 10% in 2011.
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