Michelin Finalizes Sale of Bias Tire and Track Units to Focus on Innovation

Michelin Finalizes Bias Tire and Track Business Sale to Boost Market Performance

Michelin has officially completed the sale of its bias tire and track businesses, a move first announced in December 2024. This strategic decision comes after securing all necessary approvals, marking a significant step in Michelin’s plan to strengthen its market performance and focus on innovation.

Details of the Transaction

The divestment includes two manufacturing plants in Sri Lanka—the Midigama Tyre Division and Casting Product Division—specializing in bias tires and tracks for compact construction equipment. Additionally, the Camso brand will transfer to the new owner after a three-year licensing period.

Strategic Shift Towards Innovation

This move is part of Michelin’s “Michelin in Motion 2030” strategy, which emphasizes growth in markets and sectors where its innovative technologies can deliver the most value. In line with this strategy, Michelin will end production of bias tires for compact construction equipment at its Olsztyn plant in Poland by the end of 2025. The company will continue to offer advanced radial tires to this market segment, as well as supplying tracks for other off-road markets.

Financial Impact and Managing Investments

The divested activities represented roughly 3% of the Group’s net sales in its third reporting segment (SR3) in 2024. By focusing on higher-value products and innovation, Michelin aims to improve segment performance and optimize managing investments for future growth.

This content is for informational purposes only and does not constitute financial advice.