Michelin scraps Mexico plant plan due US slowdown
PARIS, Aug 29 (Reuters) - France's Michelin (MICP.PA: Quote, Profile, Research, Stock Buzz), one of the worlds' biggest tyre groups, said on Friday it was shelving plans for a second plant in Mexico as it adjusted its capacity downwards in North America due to lower demand.
Michelin had said in August 2007 it would build a plant in the state of Guanajuato.
The plant was intended to produce tyres for the North American market.
Michelin said productivity gains and additional investments in existing North American production facilities would enable to respond to continued strong demand for high-performance and large-diameter tires.
All of Michelin's other investment projects in North America will continue, it said. (Reporting by Marcel Michelson; Editing by Louise Heavens)
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