Michelin’s expansion project at Shanghai plant commences production

Gasgoo Munich- Michelin officially launched production at the second phase of its Shanghai factory expansion. The project, known as the "Magnolia Project," is located in the Minhang Economic and Technological Development Zone.

Shanghai and Minhang District authorities recognize the initiative as a major foreign investment. It represents a total investment of 3 billion yuan. This is the Michelin Group's first top-tier strategic project designed around the "future factory" concept.

Image source: Michelin China

The project focuses on high-performance, large-size passenger vehicle tires. Sizes range from 18 to 24 inches. This aligns with China's shift toward electrification, intelligence, and premium mobility. About 70% of capacity serves new energy models. This meets demands for load-bearing, noise reduction, and low rolling resistance.

With the first phase operational, the Shanghai plant added 1 million units of annual capacity. It added over 100 high-end product specifications. Total annual output rose from 8.5 million to 9.5 million units. The product portfolio expanded to over 360 items.

The facility introduces an ultra-flexible manufacturing model. It uses Michelin's most advanced global tire production processes. A single molding machine produces a tire every 36 seconds. This allows for orders as small as 100 units. Lead times fell from 10 days to 5. This meets demands for small batches and rapid response.

The project integrates AI quality inspection and digital twin technology. This enables intelligent control over the production workflow. It achieves 100% electrified manufacturing and clean energy coverage. Advanced electric vulcanization equipment increased energy efficiency by over 400%. This compares to traditional steam methods. It sets a benchmark for green manufacturing.