At a cost of US$21.5m (£16.5m), the French OEM plans to develop its production facility in Dundee with additional premises and new building equipment.
In addition, a revolutionary manufacturing technique could provide environmental benefits, with new technology that has the potential to reduce CO2 emissions by 7,140 tonnes per year.
The Scottish Enterprise is supporting the project with a US$5.9 (£4.5m) Environmental Protection Grant while Michelin will invest US$15.5m (£12m) in the site, supporting the increasing demand for larger tires.