Michelin North America plans to grow its manufacturing facilities in Greenville with a $100 million Expansion Project that surfaced during the first reading of a Fee-in-Lieu of Tax agreement extension at Greenville County Council’s meeting Tuesday.
The expansion project will add up to a $542 million investment by the French company at the end of the 15-year extended investment period discussed in the county council ordinance (.pdf).
“We are committing to invest an additional $100 million in our Greenville County facilities for equipment and machinery for our facilities in Greenville County throughout the next seven years (a five-year investment period extension), consistent with our commitment to accelerate advanced manufacturing in our state,” Michelin said in a written statement. “The current FILOT property tax reduction will be extended 10 years and the special source credits will also be extended 10 years.”
Michelin’s North American headquarters first came to the Upstate in 1985. In 2012, the company entered into an agreement to pay Greenville County a fee instead of taxes and receive special source revenue credits to help finance the expansion of the company’s tire production and sale capacities. Since then, Michelin has invested more than $442 million — $242 million more than the amount required by the original FILOT agreement, according to the ordinance.
"In partnership with Greenville County, these actions are intended to simplify older tax agreements and alleviate administrative burden to our local government," the company said. "The amount we contribute to the county does not change, and there is no net financial impact to Michelin or the state government."
Michelin has a manufacturing site in Lexington, located at 2420 Two Notch Road, that was established in 1981 and underwent a $200 million expansion in 2011. The 1.2 millon-square-foot passenger and light truck tire facility employs around 1,400 people.p