The Michelin plant in Lexington, SC, poised for a significant expansion.
Michelin North America Inc. is considering a $159 million expansion at its Lexington plant, following local leaders’ approval to start negotiations on a tax agreement. This investment could significantly boost the local economy by creating jobs and allowing Michelin to save on property taxes. Currently operating at 288,200 metric tons per year and employing over 3,164 people, the Lexington facility is central to Michelin’s operations in South Carolina, hinting at potential growth for the community as discussions progress.
Hey there, Lexington! We’ve got some exciting buzz in town as Michelin North America Inc. is considering a whopping $$159 million expansion at their plant right here in our beautiful city. This potential investment was revealed in a recent filing with the Lexington County Council, and it’s making waves among local officials and residents alike.
On December 10, local officials unanimously gave the thumbs up to kick off discussions with Michelin about the expansion plans. How great is that? This shows just how much our community values the presence and contributions of Michelin. The upcoming negotiations will mainly revolve around a fee-in-lieu-of-tax (FILOT) agreement, which is a fancy way of saying that Michelin could save on property taxes in exchange for their investment. Sounds like a win-win to us!
Now, here’s the scoop: South Carolina has a program where industries that invest at least $$2.5 million can negotiate these FILOT agreements. This means they could save around 40% on property taxes! For a company like Michelin, it can mean substantial savings, allowing them to reinvest those funds back into the business—and potentially create even more jobs.
For those who might not know, the Lexington plant is already quite the powerhouse, operating at a capacity of 288,200 metric tons per year and employing around 3,164 people. That’s a whole lot of tires being produced and a whole lot of livelihoods supported! And since the Lexington facility opened its doors in 1981, it has been a vital part of our local economy.
Speaking of vital, it’s worth noting that Michelin has four plants across South Carolina. This illustrates the significance of our state to the company’s operations. In fact, just in October 2023, Michelin announced that they would be relocating some production capacity from their Ardmore, Oklahoma, facility in preparation for its closure by the end of 2025. It’s anticipated that some of that capacity could land right here in Lexington, which would be a huge boost for our local economy!
The last time Michelin made headlines for investing in the Lexington plant was back in late 2020, when they poured in $$175 million for upgrades across their South Carolina facilities. Clearly, they are no strangers to investing in our community, and this latest potential expansion signals their continued commitment to growth and local engagement.
So, what does this all mean for Lexington and its residents? Well, it suggests that our community might see even more jobs, economic boost, and overall development in the upcoming years. While Michelin hasn’t officially confirmed the expansion yet, they made it clear that they are always looking at opportunities for business development. It’s a promising sign for all of us!
Let’s keep our fingers crossed and stay tuned for more updates as discussions progress. Lexington, it seems, is on the brink of something big, and we can’t wait to see where this journey takes us!
Big Changes Ahead for Lexington, S.C. with Michelin Expansion
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