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Michelin Plans Major Expansion in Lexington County

Aerial view of Michelin manufacturing facility under expansion.

News Summary

Lexington is abuzz as Michelin proposes a $159 million expansion at its Two Notch Road facility. The Lexington County Council has shown strong support by voting unanimously to negotiate tax incentives. While specifics on job creation are still unknown, this initiative aims to bolster the local economy, reflecting Michelin’s commitment to South Carolina as a manufacturing leader.

Big News for Lexington: Michelin May Expand Its Footprint

Lexington is buzzing with excitement as news spreads about a potential expansion worth $159 million at the Michelin manufacturing facility on Two Notch Road, just off I-20. This expansion could mark a significant milestone for Lexington County, known for being a hot spot for tire production.

A Move in the Right Direction

On December 10, the Lexington County Council voted ⚖️ unanimously in favor of entering negotiations with Michelin regarding this expansion, showing strong local support for the project. The details may still be under wraps, but we do know that Michelin is looking for “fee in lieu of tax” (FILOT) incentives to sweeten the deal. This could mean major savings for the company and a boost for the local economy!

Understanding FILOT Incentives

But what exactly are these FILOT incentives? Well, they allow companies like Michelin to negotiate their fees with counties rather than paying standard property taxes. According to the South Carolina Department of Revenue, participating in this program can save companies around 40% on property taxes. To put that into context, in 2023 alone, Michelin North America paid more than $6 million in county real estate taxes—definitely no small change!

What Does This Mean for Lexington?

While it’s still up in the air regarding how many new jobs the expansion might create or when it might occur, the potential for job creation is undeniably exciting. Any new jobs would not only benefit those directly involved but also residents in the surrounding area looking for work. The Lexington plant is already well-known for producing high-quality passenger and earthmover tires, as highlighted by the U.S. Tire Manufacturers Association.

Regional Significance

Michelin is no stranger to South Carolina, with multiple facilities operating in the region, including in Duncan, Greenville, Sandy Springs, Spartanburg, and Starr, highlighting its investment in the state. Additionally, Michelin also maintains facilities in Asheboro and Norwood, North Carolina, further solidifying its role as a tire manufacturing leader. The proposed expansion could enhance the company’s output, leading to better products and more operational capacity to meet demand.

Future Considerations

As negotiations continue, it remains to be seen how this expansion will fit into the overall landscape of Lexington County. Residents are eager to learn more about the timeline and the number of new jobs that could potentially spring from this development. Many are hopeful that if all goes well, this might be just the beginning of increased economic opportunities in the area.

But Wait, There’s More

In related news, there’s also talk of a proposed $2 million study focusing on tackling traffic issues along I-77 near Carowinds in South Carolina. Everything from tire production to traffic solutions is on the table, showing substantial investment and interest in improving the local infrastructure and economy.