'Non-Tire Businesses' to Make Up More of Michelin's Sales
The Michelin Group's recently announced Michelin in Motion strategy calls for 20% to 30% of the company's total sales to come from "non-tire businesses" by the year 2030.
The announcement was made by Florent Menegaux, Michelin's managing chairman, during the company's Capital Markets Day event, held earlier this month.
Noting that Michelin will continue to "expand, invest and innovate in its tire businesses," the company outlined five non-tire areas where it intends to "drive strong expansion." They include:
- Services and solutions, where Michelin will "broaden and deepen its portfolio of fleet solutions, in particular by leveraging smart objects and the value of its collected data;"
- Flexible composites market (conveyors, belts, coated fabrics, seals, etc.) - which Michelin considers to be a fast-growing segment - by "pursuing its value-creating mergers and acquisitions strategy and incubating new businesses;"
- Medical devices, which Michelin says represents "a growth opportunity in the years ahead;"
- Metal 3D printing, where Michelin "has developed unique expertise that supports the ability of AddUp, its joint venture with Fives, to market a comprehensive range of tailor-made solutions for manufacturers;"
- And hydrogen mobility, an area in which Michelin is seeking "to become a world leader in hydrogen fuel cell systems through Symbio, its joint venture with Faurecia."
During the event, Menegaux also announced that Michelin intends to drive "sustained growth" of 5% per year, on average, between 2023 and 2030, after the company expects the COVID-19 pandemic to end.
According to Michelin officials, "post-COVID mobility trends and the accelerating growth of the electric vehicle market represent genuine growth opportunities for the Group.
"In the road transportation segment, the Group will selectively focus on creating value, while in mining, earthmover, agricultural, aircraft and other specialty tires, Michelin intends to remain the benchmark by capitalizing on the differentiation of its products and services."
The company's Michelin in Motion strategy also calls for a sharp reduction in CO2 emissions, as well as a substantial increase in the use of sustainable raw materials in the construction of its products - up to 40% by 2030 and 100% by 2050.