So far in the AM industry, one notes that acquisitions and mergers are primary actions companies take to further expand and cope with the Covid-19 pandemic. For some companies, however, the recovery plan consists in exploring paths that are beyond their core business. That’s anyway the case of the French company Michelin that currently envisions new non-tire growth territories.
Mainly known for its tires and guide to the best restaurants in the world, Michelin plans to add about €14 billion ($17 billion) to its annual revenues by 2030, by recovering from a pandemic-induced slowdown and diversifying beyond its tyre-making legacy.
Betting on five new areas to make a lot of money
The reality is a prosperous tire-sales business greatly depends on the way people buy cars. The equation is simple: if people don’t buy cars, they will not need tires. The ugly truth is, no one was really expecting a pandemic to wipe out the commercialization of vehicles.
To recuperate from the loss of revenue caused by this pandemic, Michelin gambles on sustainable technology and will focus its expansion strategy on five new segments: Services & Solutions, flexible composites, medical devices, metal 3D printing and Hydrogen mobility.
Through Services & Solutions, the French expert in tires wants to leverage smart objects and the value of its collected data to broaden its portfolio of fleet solutions. Composites are not only an emerging market in the AM industry. New opportunities in flexible composites can be explored for conveyors, belts, coated fabrics, seals, etc. to name a few applications. In this specific area, Michelin will develop a mergers and acquisitions strategy and will explore ways to incubate new businesses. Needless to mention again the wide range of possibilities that medical devices enable. However, In Hydrogen mobility, the Group is seeking to become a leader in hydrogen fuel cell systems through Symbio, its joint venture with Faurecia.
And metal 3D printing, the area that raises our interest the most: while this 3D printed biodegradable tyre was Michelin’s first approach that we witnessed in the AM industry,it should be noted that theFrench tyre manufacturer is one of the founders of AddUp, the joint-venture it created with Fives and that provides a comprehensive range of metal 3D printing solutions.
During the Capital Markets Day, Florent Menegaux, Managing Chairman, noted: “With this new Michelin In Motion strategic plan, the Group is embarking on an ambitious growth dynamic for the next ten years. I am convinced that the engagement and capacity for innovation of our teams will enable us to deliver a harmonious blend of sustained business performance, continuous employee development and a commitment to the planet and our host communities. Even as it remains true to its DNA, by 2030 the Group’s profile will have significantly changed with the ramp-up of new, high value-added businesses in both around and beyond markets. It is this ability to constantly reinvent itself that has underpinned Michelin’s strength for more than 130 years and which today gives us confidence in the future.”
While Hydrogen fuel cell vehicles seem to gain momentum in Europe, the current state of the market makes me think that a greater emphasis on metal AM and medical supplies can easily guarantee cash, but that’s a choice only Michelin can make.
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