Clermont-Ferrand, France - Michelin has announced that, due to a decline in regional tire markets, it will not proceed with a new plant in Mexico. The company cited lower demand as a major factor in the decline.

The new plant, announced in August 2007, was to be located in the state of Guanajuato and was intended to produce tires for the North American market.

Michelin said that productivity gains and additional investments in existing North American production facilities will enable it to respond to continued strong demand for high-performance and large-diameter tires, and that all other investment projects in North America will continue.