The article presents an investigation of the harmonic level and its possible reduction methods for one of the Michelin factory transformer substation. The substation electrical network consists of two transformers (1.6 MVA and 2.0 MVA) supplying a production line composed of several electrical equipment based on DC and AC motors. In order to investigate the harmonics level and its influence on the substation operation the measurements of the current and the load factor of the powered machines as well as the coefficients THDu, THDi, Du and Di have been performed using the 3-phase energy quality analyzer Fluke 435II and the network parameter recorder PEL103. Basing on the measurements data the four harmonics reduction methods (passive filters, active filters, 12-pulse rectifier and the Active Front End system) have been proposed and studied. For this purpose the substation electrical network has been modelled using Emerson Harmonics Estymator software. Furthermore, in order to choose the optimal solution the financial analysis of the potential investments has been performed.