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Manufacturing today Michelin North America announced.
Plans to build the first North American plant in fifteen years and also they're -- to expand an existing factory.
A move the carmaker says -- -- up to 500 jobs -- solid match against North American chairman and president joins us now -- unless -- -- to say.
Congratulations to you -- in South Carolina America or all of the above this is amazing news why South Carolina line.
-- really as we've been -- South Carolina manufacturing tires at Michelin for now over forty years.
The announcement today is an expansion of our eighth plant and the building of our ninth plant here we have found.
-- South Carolina provides is a great infrastructure.
It's a great place to find people.
Who are well trained or skilled -- -- are committed to excellence working in manufacturing so we've had good experience here.
The interesting thing about this plant is we could have built this earth mover tire plant.
Anywhere in the world -- build -- and China and India and Brazil because.
80% of what's gonna be made here is gonna be exported outside -- the United States but the company chose to put it in South Carolina which shows that manufacturing can work.
Here in the United States.
So what what drove that I mean was -- the expertise of the workers there right going to be tax policy.
Because you know you're talking 750 million not a small amount of money not -- small commitment on your part.
Why not go to these other places for typically when a lot of and could be the end end market for these fires.
Well we had a lot of expertise here in South Carolina based on the plant that we built here fifteen years ago.
And the -- people that are involved in developing the tires like the one you see behind me.
There's a lot of technology that goes into building this sort of a -- that are behind me is the largest -- in the world is twelve and a half feet tall.
It weighs more than five times.
And to achieve the number of hours of operation on the equipment it goes that it goes on.
You you have to have excellent technology in terms of the rubber mixing in terms of the steel cables that you -- to build the casing and the and the steel belts.
And also in terms of the assembly.
So very few companies have that technology and we've really master that technology here in South Carolina Michelin.
You know -- a lot of concern right now about the global economy particularly some of the end markets for those particular tires.
What what does this say that you guys are going for what this investor right now do you think that this is mostly noise -- that this global prosperity that we're seeing.
As more or less going to continue.
-- not a matter of us being contrarian.
To the thinking clearly we see what's going on in the market today.
And in our traditional passenger -- truck markets were throttling our production to match actual sales and marketplace we're seeing.
We're seeing growth in general and in the market.
But as far as the earth mover tires go.
That support infrastructure and and development primarily in emerging markets over the coming years but in addition.
These tires go on vehicles that normally replaced much smaller much less productive.
Our construction and mining equipment so even during the recession in 20082009.
We saw demand -- -- increase significantly.
And so we expect over the ten years to come that the demand will continue to grow rather rapidly.
Well -- I know you -- Carreira does that officer in the infantry so we thank you for your service then and now because this is a big they'll be selling missing in the -- Michelin North American chairman and -- and president Richard thanks so much thank.