CLERMONT-FERRAND, France — Group Michelin, which up until a few years ago was focused almost exclusively on tires, anticipates deriving up to 20% of its annual revenue from non-tire manufacturing-related activities by 2030, company executives said during the firm's recent Markets Day presentations.
In fiscal 2023, Michelin generated roughly 5% of its annual sales of $30.6 billion — roughly $1.5 billion — from the sale of polymer composite solutions (belts and engineered rubber products, primarily) under the Fenner business and 11% from connected solutions, retail and wholesale distribution activities and its lifestyle business unit.
Michelin said growing the non-tire side of its business would be supported in the coming years by "value-accretive" merger and acquisition activity.
The company's largest drive in this direction was in 2018 with its acquisition of UK-based conveyor-belt manufacturer Fenner P.L.C.
In 2021, Michelin acquired AirCaptif, a startup in the field of ultralight inflatable insulation solutions for industry or health care, a move in line with Michelin's stated goal of diversification.
In 2023, Michelin — looking "to become a global leader in high-tech engineered fabrics and films" — acquired Paris-based Flex Composite Group for more than $764 million. The company posted sales of $202.5 million in 2022.
These acquisitions and other moves tie in strongly with the "Michelin in Motion" corporate strategy unveiled in 2021.