Michelin Completes Divestment of Bias Tires and Tracks
Michelin has successfully concluded the sale of its bias tires and tracks for compact construction equipment activities. This important step aligns with the company’s strategic objectives and serves as a part of their sustainability initiatives.
Details of the Divestment
The divestment includes two significant plants located in Sri Lanka—Midigama Tyre Division and Casting Product Division. These operations are primarily focused on producing bias tires and tracks specifically designed for compact construction equipment.
Additionally, the well-known Camso brand is included in this transaction and will transition following a three-year licensing period after the sale.
Strategic Realignment
This divestment aligns seamlessly with Michelin's "in Motion 2030" sustainability strategy. The strategy aims to concentrate the Group’s efforts on areas where its advanced technologies and innovations can create the most value.
Furthermore, the Michelin Group intends to phase out the production of bias tires for compact construction equipment at its Olsztyn plant in Poland by the end of 2025.
Financial Implications
Following the completion of this sale, Michelin anticipates improved financial performance for the Group’s third Reporting Segment (RS3). The activities that are being divested contributed approximately 3% to this segment’s net sales in 2024.
Future Directions
By discontinuing the production of bias tires for compact construction equipment, Michelin will continue to focus on its robust range of radial technology tires, which are well-suited for other markets that demand advanced performance and reliability.
Contact Information
If you need further information or have inquiries, Michelin has provided detailed contact information:
Investor Relations
Email: investor-relations@michelin.com
Contact: Guillaume Jullienne
Email: guillaume.jullienne@michelin.com
For media-related inquiries, contact:
Media Relations
Phone: +33 (0) 1 45 66 22 22
Email: groupe-michelin.service.de.presse@michelin.com
For individual shareholder inquiries, please use the following:
Individual Shareholders
Phone: +33 (0) 4 73 32 23 05
Email: muriel.combris-battut@michelin.com
Frequently Asked Questions
What prompted Michelin to divest its compact construction equipment activities?
The divestment is part of Michelin's strategic realignment to focus more on areas with the greatest potential for innovation and growth.
When did Michelin finalize the divestment process?
Michelin completed the sale after obtaining all necessary approvals following the announcement made in December 2024.
In which locations are the divested plants based?
The plants involved in the divestment are located in Sri Lanka, specifically the Midigama Tyre Division and Casting Product Division.
What percentage of net sales in 2024 did the divested activities account for?
The activities divested represented approximately 3% of the Group's third Reporting Segment (RS3) net sales for the year 2024.
How does this divestment affect Michelin’s production capabilities?
While Michelin is discontinuing bias tire production for compact construction equipment, it continues to produce radial technology tires for various beyond-road markets.
