MICHELIN (Compagnie Generale des Establissements Michelin S.C.A.) Business Report FY2011
|(in million euros)|
|FY2011||FY2010||Rate of change (%)||Factor|
|Business unit of Passenger Car-Light Truck & Related Distribution|
|Business unit of Truck & Related Distribution|
-Net sales in the Passenger Car and Light Truck Tires and Related Distribution segment stood at 10,780 million dollars, up 10.1% on 2010 due to the 3.9% increase in sales volumes, the solid pricing dynamic maintained throughout the year, and the success of the MICHELIN Pilot Super Sport, MICHELIN Primacy HP and MICHELIN ALPIN 4 lines.
-Net sales in the Truck Tires and Related Distribution segment amounted to 6,718 million dollars, a gain of 18.3% on 2010. Sales volumes ended the year up 5.8% after rising 15.6% in the first half due to purchases ahead of announced price increases.
Contracts-The Company announced that its MICHELIN Pilot Super Sport tire has been selected as original equipment on the Fuji Heavy Industries' Subaru S206. The tire size is 245/35ZR19 (93Y) XL. This is the first time for the MICHELIN Pilot Super Sport to be used by Japanese automakers. (From a press release on November 25, 2011)
-The Company announced that its "Michelin Energy Saver" fuel-efficient tires have been chosen for installation on the new Honda Fit Shuttle Hybrid. The Energy Saver tires contribute to improving fuel economy, while offering high levels of safety and durability, which are required as basic tire performances. (From an article in the Nikkan Jidosha Shimbun on June 23, 2011)
-In Jan, 2011, “MICHELIN Pilot Sport 3” sports tire for passenger cars was chosen as an originally equipped tire for the Audi compact car “A1” for its high performance in sporty driving. (From an article in the Nikkan Jidosha Shimbun on January 14, 2011)
-The Company, Double Coin Holdings Ltd. and Shanghai Huayi (Group) Company have signed the final agreement to create a joint venture in China to produce and market Warrior brand passenger car and light truck tires for the local market. The new company, Double Coin Group (Anhui) Warrior Tires Co, will be owned 40% by Michelin and 60% by its Chinese partners. The Michelin Group will contribute capital of 667 million Chinese yuan (approximately 75 million euros) to the joint venture. Double Coin Group (Anhui) Warrior Tires Co will operate a plant now being built in Wuwei, Anhui province. Representing an investment of 3.5 billion Chinese yuan (approximately 390 million euros), the project calls for creating production capacity of 15 million car and light truck tires eventually. In late 2010, Michelin launched a 1,350 million USD capital expenditure program in Shenyang, Liaoning province, China. The new unit will eventually have twice the production capacity as the former plant. It will mainly produce Michelin-brand fuel-efficient tires, with capacity eventually reaching 10 million passenger cars and small truck tires, 1.8 million truck and bus tires. (From a press release on September 7, 2011)
Divestitures-Compagnie Financiere Michelin, a 100% owned subsidiary of Compagnie Generale des Etablissements Michelin, has sold 15,195,587 shares of Hankook Tire, representing approximately 9.98% of the share capital of this company. (From a press release on November 8, 2011)
|(in million euros)|
R&D Structure-6,000 people are engaged in the R&D operations in the world.
-The Company has undertaken a top-to-bottom upgrade of its research and development center in Ladoux, near Clermont-Ferrand, France. It will consolidate all Michelin R&D teams and laboratories on the same site to strengthen its innovation capabilities and shorten new tire time-to-market. The project includes the renovation of existing buildings and the construction within the site of a 67,000-square-meter building called RDI Campus. The entire project represents an investment of more than 100 million euros. Construction of the building will begin in spring 2012. The first section of the main building – for around 600 people – will be delivered in 2014. In the center, where some 3,300 people work, a new complex will be built by 2017. The second will be completed in late 2016, when 1,000 additional people will be installed in the Center. (From a press release on January 20, 2011)
The flat-free tire technology
-The Company's new self-repairing tire has made its world premiere at the Michelin Challenge Bibendum 2011 held in Berlin, Germany. The flat-free tire technology features an interior material that quickly fills in any puncture, including punctures from nails, thus allowing the tire to maintain air pressure. In addition, the new rubber material does not accumulate at the bottom of the tire interior even after the vehicle is stopped for a long time. This prevents the tire from causing vibration when the vehicle starts running, which helps maintain rolling resistance and superior fuel efficiency. Michelin has filed 15 patents for the self-repairing tire. (From an article in the Nikkan Jidosha Shimbun on May 27, 2011)
|(in million euros)|
-Three strategic projects in Brazil, China and India will account for nearly one-third of consolidated capital expenditure for the 2011-2015 period. Beginning in 2012, South America and Asia could produce 50% of the world’s new automobiles. The same year, three giant new plants will begin manufacturing their first tires in Brazil, China and India. Representing a total investment of 2.75 billion dollars, at a time when demand is expected to grow by 8 to 10% a year over the next 10 to 15 years, the three plants will strengthen its scope and reach in the global marketplace.