Michelin is the first in the world next year, steady?

- Dec 10, 2018-

In the past 10 years, Bridgestone has been sitting firmly on the top spot in the world's largest tire manufacturer, and the second-ranked Michelin has a gap of about $1 billion with its sales. With the recent acquisition and capital action of Michelin, the latter may be expected to launch an impact on Bridgestone's “first” next year.


Recently, Michelin issued a bond worth 2.9 billion US dollars (about 19.81 billion yuan) to the stock market. The proceeds from the bond will be used for the company's business activities, which can effectively increase its capital reserve and liquidity, or it will be Michelin. The next round of acquisitions will be prepared for expansion.


China Rubber Network has learned that Michelin has made a number of large-scale acquisitions in a year, the most notable of which is the acquisition of Canadian cross-country tire and rubber track manufacturer Camso Group for US$1.7 billion. .


According to the "Top 20 Global Tire Companies in 2018" ranking, Bridgestone's tire sales revenue in 2017 was 24.35 billion US dollars, while Michelin's project amounted to 23.560 billion US dollars, ranking 34th in the world. Next year, it will be included as a subsidiary in Michelin's financial statements. Its tire sales revenue is US$830 million. From this point of view, Michelin's sales revenue will exceed Bridgestone's next year.


In addition, Carmospeed recently announced that it has expanded its agricultural system manufacturing facility in Iowa and will expand its tire and rail market capabilities in a timely manner.


In addition, in May 2018, Michelin acquired the British conveyor belt and polymer manufacturer Fenner for $1.7 billion. The company said that after the transaction, Michelin will provide mining customers with tires. A full range of services, such as conveyor belts, effectively enhance the Group's customer base, which means that Michelin will effectively expand its downstream customers and increase the sales of tire products through the acquisition of Fenner.


According to the latest news from Michelin, the acquisition will bring in a “real-time synergy” of $39 million, and is expected to achieve a synergy of $77.8 million by acquiring the acquisition by 2022.


Synergy Effects means that the company's competitiveness after the acquisition or merger is strengthened, or the company's performance after the merger is higher than the expected performance of the two companies. It can also be interpreted as "1+1>2". ".


In addition, Michelin has also acquired the “micronized rubber powder” (MRP) producer Lehigh Technology to promote a series of financial actions such as the implementation of the “100% cycle of tires” sustainable development plan.


Michelin's technical strength has always been the leader of the tire industry, and Bridgestone is "to dominate" the industry with accurate market occupation.


Bridgestone also recently announced a new expansion plan, which will cost 28.3 million euros (about 225 million yuan) to expand its capacity in the Tatabánya tire factory in Hungary, the new project will use the most advanced digital technology manufacturing technology.


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