MICHELIN has started work on a �20 million modernisation programme that will secure employment in North Staffordshire for years to come.
The Stoke manufacturer has submitted a planning application to expand the production area for its new generation of tyres.
And it has already started modifying existing buildings before constructing a new facility at its Campbell Road site next year when the scheme has been approved by Stoke-on-Trent City Council.
Michelin factory manager Peter Marsh said: "I think it's tremendous news, not just for Michelin but for North Staffordshire.
"Thanks to the commitment shown by our employees it is another step forward and great news for long-term security and the future of manufacturing on the Stoke site.
"It will allow us to maintain our manufacturing base in North Staffordshire, which the area needs, and it allows us to develop our people and retain their skills using the new facilities."
Last year the world-famous brand accepted a grant of up to �3.9 million from the Government, and that paved the way for further cash from the firm's French head office.
Over the next five years, senior managers at the Campbell Road business want to plough in more than �20 million to make it the most advanced plant of its type in the world.
The plans submitted by Michelin show the modernisation will lead to a net loss of about 50 jobs, but Mr Marsh insists the scheme will safeguard the long-term future of the factory.
He said: "As the plant evolves and the project evolves there will be substantial gains in productivity.
"This will allow us to maintain our competitiveness, and any reduction in employees will be managed through natural turnover.
"At the beginning of the year the funds for the projects were released by Michelin Group. With the Government grant from the Department for Business, Innovation and Skills, we have now moved into the deployment phase of the modernisation of the plant."
The new production space will be used to produce Michelin Durable Technologies (MDT) tyres for the UK truck market.
The company claims the new products offer significant fuel savings to fleet operators as well as increased safety and environmental benefits.
Michelin was hit hard by the recession, as the downturn took its toll on road deliveries, but sales have picked up.
Mr Marsh said: "Across our range of tyres we are seeing an increased demand compared to 2010, and the market is actually quite buoyant.
"Following the recession of 2009 there has been a gradual development of the economy. Demand for tyres is a good barometer for the economy as a whole."
Michelin has been manufacturing in Stoke-on-Trent since 1927 and it employs more than 1,000 people in North Staffordshire.
Bryan Carnes, chief executive of the North Staffordshire Chamber of Commerce, said: "Michelin is a leading global company and we are fortunate that they have shown a continued commitment to Stoke-on-Trent.
"Since they first moved here in 1927, even during major upheavals in the tyre industry, they have continued to support employment and provide opportunities in North Staffordshire.
"This latest investment is a good example of that continuing commitment and I'm sure the company will go on to provide employment for many years to come."
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