Michelin Aircraft Tire Awarded Major U.S. Government Contract

Jan. 8, 2007
The Defense Supply Center - Columbus, Ohio (DSC-C) has awarded Michelin Aircraft Tire Co., LLC the Tire Privatization Initiative contract for aircraft tires. This 10-year $700 million-plus contract (including options) is the largest single tire contract ever awarded in the history of Michelin Aircraft Tire.

GREENVILLE, S.C. – The Defense Supply Center - Columbus, Ohio (DSC-C) has awarded Michelin Aircraft Tire Co., LLC the Tire Privatization Initiative contract for aircraft tires. This 10-year $700 million-plus contract (including options) is the largest single tire contract ever awarded in the history of Michelin Aircraft Tire.

The Tire Privatization Initiative includes the wholesale supply, storage, and distribution functions for all aircraft tires used by the U.S. Department of Defense (DoD). DSC-C will retain only the contracting function for aircraft tires. This allows the DoD to take advantage of the latest technologies, expertise, and business practices of private industry to provide a more responsive supply / support program for its forces, whether they are on home soil or deployed worldwide.

"This contract underscores the value that Michelin delivers to customers by providing not only the best quality tires in the world but also cost-saving services, such as the 'One Touch Supply' tire program conceived by the military and implemented by Michelin,” said Francois Corbin, president of Michelin's Aircraft Tire division. "Building on our success as prime contractor of the logistics program for U.S. Navy aircraft tires, Michelin is ready to step up as the one-stop source for all military aircraft tire needs."

Michelin, along with its logistics partner Lockheed Martin MS2 in Moorestown, N.J., will assume responsibility for managing the supply and delivery of all U.S. Air Force and U.S. Army military aircraft tires across the globe in addition to their existing contract with the U.S. Navy.

Under its current contract with the U.S. Navy, Michelin is required to deliver Navy aircraft tires anywhere in the continental United States in 48 hours or less, and anywhere in the world, including deployed aircraft carriers, in 96 hours or less. Michelin is currently exceeding the Navy's delivery requirements, averaging over 98 percent on-time delivery with zero backorders. Now, the world's leading tire maker extends this logistics expertise to include U.S. Air Force and U.S. Army aircraft tire needs.

Michelin North America continues to invest heavily in manufacturing, including increased tire production capacity to serve the needs of the U.S. Department of Defense. Michelin will meet the military's aircraft tire demand by providing Michelin® brand tires as well as sourcing and managing tires made by some of its competitors.

Dedicated to the improvement of sustainable mobility, Michelin designs, manufactures and sells tires for every type of vehicle, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks, motorcycles and the space shuttle. The company also publishes travel guides, hotel and restaurant guides, maps and road atlases. Headquartered in Greenville, S.C., Michelin North America (www.michelin-us.com) employs 22,300 and operates 19 major manufacturing plants in 17 locations.