French tyre maker Michelin announced that it had agreed to buy British engineering firm Fenner for $1.7 billion. This move underscores Michelin’s commitment to providing sustainable mobility solutions, as Fenner specializes in rubber solutions for commercial vehicles, agricultural, and mining applications.
Let’s look at the agreement’s details and what it means for Michelin’s sustainability strategy.
Overview of Michelin
French tyre maker Michelin is a world leader in mobility, with operations in over 170 countries. As the leading global provider of tyres and related services, Michelin takes sustainability very seriously when delivering its products and services. The company has committed to promoting responsible production and providing green solutions; from investing in tackling climate change to designing carbon-efficient tyres.
Among the strategies adopted by Michelin to advance its commitment to sustainable mobility, the acquisition of Britain’s Fenner PLC stands out. This move is an important milestone for Michelin’s roadmap towards a greener tomorrow, striving to make cities and streets safer, smarter and more connected.
Michelin values innovation as a key contributor towards finding smart solutions that are both economically viable and ecologically sound. With its collective aim of creating value for customers through low-energy tyre options with longer life spans, Michelin leads the way regarding sustainability innovation across industries. Through this strategic merger between Fenner PLC and Michelin, appropriate measures are taken to ensure compliance with both environmental regulations and ethical standards within the region (UK).
Overview of Fenner
Fenner PLC is a British engineering company founded in 1861 by George Fenner. It is a world leader in reinforced polymer technology and works with more than 20 markets, including construction & agriculture, automotive & aerospace and oil & gas. They are known for their expertise in sealing and vibration loss solutions, composite ties and hydraulic applications. Fenner offers products that enhance performance and safety while reducing operational costs.
Fenner’s product offerings include conveyor belts for materials handling applications, engineering plastics for seals and bushings purposes, fabric reinforcements for automation machines and fluid power services to reduce losses in pumps and motors used underground. Additionally, Fenner provides technical consultation to customers on the most effective solution for their specific needs.
This British company has operations across Europe, North America, Asia-Pacific and Africa; serves over 35 product markets; operates 11 major facilities worldwide; employs approximately 3,550 people; has an extensive supplier network which enables them to provide quality products at competitive prices; exports more than 50 percent of its production globally; invests heavily in research & development processes which ensures reliability at a low cost of ownership; integrates environmental management policies into all operations; emphasizes sustainability of resources to remain competitive globally.
Michelin’s Commitment to Sustainable Mobility
French tyre maker Michelin has committed to sustainable mobility with its recent purchase of Britain’s Fenner for $1.7 billion. The company has long been a leader in sustainability, from reducing the environmental impact of its tyres to investing in the development of renewable energy sources.
In this article, we will examine Michelin’s commitment to sustainable mobility and its importance.
Michelin’s commitment to sustainability
Since its creation more than 120 years ago, French tyre maker Michelin has continued innovating and evolving to become an industry leader in sustainable mobility. As part of its commitment to this goal, it continuously strives to develop solutions that make a positive impact. This includes an active role in developing smart technology, alternative vehicle fuels, and improved methods for reclaiming used materials from end-of-life tyres.
In 2010, Michelin formulated its Corporate Strategic Plan 2020, which positioned sustainable mobility as one of the core principles guiding its long-term goals and objectives. This commitment is reflected in Michelin’s many investments and initiatives designed to enhance safety, reduce fuel consumption and create a better quality of life for people worldwide.
In 2016, Michelin announced plans to buy British tyre manufacturer Fenner PLC for USD 1.7 billion; a move aimed at increasing its presence across multiple markets while improving production efficiency through Fenner’s low cost plants in India and China. In addition, the acquisition will allow Michelin access to a wider range of tire materials that are not available at other factories worldwide. This will help them further optimize the green contribution of their products by reusing high-quality materials close to the factories where they are produced – reducing resource consumption from transportation costs and providing improved performance tyres with lower rolling resistance levels.
Additionally, by leveraging both companies’ expertise together for research & development purposes and commercial & marketing strategies; this partnership enables Michelin to move faster towards their 2050 Vision – a pledge dedicated to making zero emissions tires available for all vehicles on Europe’s roads by 2050. Through this plan, Michelin hopes to improve road traffic efficiency and reduce global CO2 emissions from automobiles by 8%.
By continuing efforts towards innovation and sustainability on both global strategic & operational levels; Michelin’s long term commitment statement reflects their vision of changing mobility needs worldwide while actively playing their part in leaving behind a better tomorrow for future generations.
Michelin’s commitment to the environment
Michelin, the world’s largest tire maker, is dedicated to helping to promote sustainable mobility and preserves of the environment. Since 2011, Michelin has focused on reducing its environmental impact through several initiatives such as increasing energy efficiency, reducing water usage and waste, and implementing new production processes.
In 2019 and 2020 Michelin announced that it would become the partner of choice for automotive OEMs (original equipment manufacturers) looking for sustainable mobility solutions. Working with clean vehicle technology leaders such as Tesla Motors, Rimac Automobili and Faraday Future, Michelin is committed to creating carbon-neutral markets using innovative materials and manufacturing processes that conserve natural resources.
Michelin has recently made an additional commitment to sustainability with its acquisition of Britain’s Fenner Group in February 2021 for 1.7 billion dollars’ worth. This major technological partnership positions Michelin at the forefront of tyre technology that uses raw materials available worldwide so they are produced sustainably and efficiently with less energy consumption compared to traditional models. The new technology also integrates silica foam into the design which works to spherically expand when inflated. Hence, they are more durable than regular tyres while providing optimum traction control performance on all types of road surfaces.
French tyre maker Michelin to buy Britain’s Fenner for $1.7 bln
In a move signalling its commitment to sustainable mobility and circular economy, French tyre maker Michelin announced on 28-Feb-2021 its acquisition of Britain’s Fenner, a global engineering company, for $1.7 billion. The move will strengthen Michelin’s leading position in the tyre and rubber industry.
Let’s dive into the details of this landmark acquisition.
Overview of the acquisition
French tyre maker Michelin announced on February 4th, 2019 that it intends to buy Britain’s Fenner for $1.7 billion, marking the largest overseas purchase ever made by the company. Through the acquisition of Fenner plc, Michelin gains access to an experienced team of personnel and a wide range of products related to construction materials and services for industrial markets. Michael Roney, CEO of Michelin Group said that this acquisition is part of their commitment towards providing sustainable mobility solutions to customers worldwide.
The deal illustrates Fenner’s strong belief in Michelin’s capabilities and its success in building a global platform across various markets over the last two decades. With this move, Michelin will benefit from a wide presence in emerging markets like China and India and improved production abilities across key technical sectors. In addition, Fenner’s existing portfolio complements their development capacity for material science solutions such as reinforced rubber components and adhesive products for difficult environments with extreme temperatures and fluid sealing capabilities.
This strategic partnership allows both companies to benefit from each other’s strengths. By leveraging their respective capabilities and expertise across global platforms, they are better equipped to create innovative technologies that enable more efficient and sustainable mobility solutions worldwide.
Benefits of the acquisition
The acquisition of Fenner by Michelin is expected to help extend the expertise of Michelin and offer new prospects for its Partners to support their customers. By offering a broader range of products in industrial maintenance, services and a wide range of products, Michelin plans to enhance their offering in the tyre sector. In addition, the enhanced product portfolio will help improve overall customer satisfaction.
The acquisition is expected to accelerate the transition towards sustainable mobility by introducing more robust and innovative materials into the marketplace. This will further advance Michelin’s mission to reduce emissions, raise safety standards, and tackle global environmental challenges.
Fenner’s tire manufacturing expertise and proven track record as one of Britain’s leading tyre-making businesses also offers potential synergies. This will lessen costs and drive significant value creation through cost savings and efficiency gains going forward. It will also open new markets for both companies, providing an ideal platform for technological innovation in the days ahead.
Conclusion
With Fenner’s $1.7 billion acquisition, Michelin has reinforced its commitment to sustainability in the mobility industry. Not only has Michelin expanded its portfolio of products and services, but it has also demonstrated its dedication to combatting climate change.
This move will surely affect the global economy and further cement Michelin’s mission of creating a more sustainable future.
Summary of the acquisition
French tyre maker Michelin has expanded its portfolio by acquiring Britain’s Fenner for $1.7 billion. This move demonstrates Michelin’s commitment to sustainable mobility, as Fenner is a leading supplier of rubber and polymeric materials to the automotive, commercial transport, speciality and industrial sectors.
By acquiring Fenner, Michelin will benefit from an extended product portfolio in terms of sustainability and innovation. It also signals the beginning of a new era in the tyre industry. It provides Michelin access to cutting-edge technologies for sustainable mobility solutions, an important element in today’s world.
The acquisition is expected to give Michelin an edge against other tyre makers and create vast opportunities for the company in global markets.
Implications for the future of Michelin
The future of Michelin is still uncertain, and a variety of factors will impact the company’s success going forward. Among these include:
- Its continued commitment to offering quality products.
- Staying competitive when it comes to pricing.
- Implementing strategies such as technological advances to keep up with changing customer preferences.
- Making investments in green initiatives.
Additionally, innovations such as sustainable tires and manufacturing processes could be a potential area for development that could improve Michelin’s overall standing.
To remain successful in the future, Michelin will have to identify and meet customer demands with their product offerings while demonstrating their commitment to excellence. Ultimately, the company’s ability to stay ahead of the competition and anticipate customer trends will likely be the key factor that determines its success in the long run.