The domestic branch of Michelin group, the world's biggest tyre producer, estimates its turnover will amount to about 325 million euros this year, 25% higher than the 260 million euros turnover it made last year.
The regional retail market last year accounted for around one third of the company's turnover, according to company data. "Our sales in the region (i.e. Romania and the Balkans) account for 30% of our turnover, with exports making up the remaining 70%," stated Jean-Marc Gebhart, CEO of Michelin Romania.
In terms of market share, the Michelin group estimates it holds around 20% of the market of car, van and truck tyres in Romania and the Balkans.
The company's estimated growth is based on the market's dynamism, which has been triggered by the rapid and steady expansion of vehicle fleets, as well as by massive investments made by the region's car and truck makers.
At the end of last year, the volume of investments Michelin had operated since its arrival on the Romanian market exceeded 180 million euros, with annual budgets for future investments amounting to around 30 million euros.
These funds will be used for personnel training and modernisation and development of production facilities.
The production of Michelin from the two facilities it owns in Zalau and Floresti, last year hit a level of around 3.8 million tyres, an increase of approximately 25% against overall production registered in the previous year.
The company estimated that the plant in Floresti, which manufactures car tyres, has a maximum production potential of 5 million units per year. The plant in Zalau is responsible for the production of tyres for trucks, heavy machinery and agricultural machinery.
The company acquired the two plants from the Tofan group in 2001, in the wake of a deal that included the acquisition of other facilities, as well. Michelin also owns a plant manufacturing metallic cords for tyre production in Romania. A large part of production achieved by the French producer is exported to the European and the US markets.
Internationally, the group had to cope with a 36% decrease in net income, to 572 million euros, amid the rising price of raw materials.
Michelin's main rivals in the tyre industry are German-owned Continental, Italian brand Pirelli and the Japanese company Bridgestone. In Romania, Continental owns a tyre producing plant and a distribution centre in Timisoara, the industrial part production plants Contitech Romania, PHX Romania, Phoenix Unio in Carei and Continental Automotive Products car part plant in Sibiu.
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