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Michelin North America gets $1.7 billion contract to supply military ground vehicle tires

Michelin North America gets $1.7 billion contract to supply military ground vehicle tires

Michelin North America has landed a 10-year, $1.7 billion (euro1.3 billion) contract with the Defense Department to supply tires from Michelin and other companies to the U.S. military for its ground-wheeled vehicles, officials said Thursday.
The contract comes several weeks after Michelin won a $700 million (euro539 million) contract to supply tires for the military's aircraft, Michelin spokeswoman Lynn Mann said.
The ground tire contract involves supplying tires to the Army, Navy, Air Force and Marines, Mann said.
Michelin will work with subcontractor Science Applications International Corp. to manage the wholesale supply, storage and distribution functions for the ground tires. The tires will be produced by Michelin as well as its competitors, Mann said.
"Michelin will provide 100 percent of the military's ground tire needs through its own and competitive tire sourcing," according to a statement from the company.
Michelin said it has invested $16 million (euro12.3 million) to increase military tire production and meet the surge in demand related to the war in Iraq.
Greenville-based Michelin North America has 22,300 workers and operates 19 plants in 17 locations in North America.
Mann said aircraft tires are made in its Norwood, North Carolina, plant, and retreading for aircraft tires is done in a Kansas City, Missouri, facility.
Tires for ground vehicles could be made in a variety of plants, including those in South Carolina, Alabama, Indiana, or Oklahoma, Mann said.
Luc Minguet, chief operating officer of Michelin Americas Truck Tires, said Michelin has been a provider of tires to the U.S. military for decades.
"Now, we'll add our expertise in logistics and supply chain management to streamline the timely supply of ground tires to U.S. troops at home and around the globe. Michelin is ready to step up as the one-stop source for all military tire needs," Minguet said.


Updated : 2021-04-14 05:07 GMT+08:00