The U.S. military has selected Michelin a 10-year $1.7 billion contract to provide tires for all its wheeled vehicles used around the world, officials said on Thursday. This contract is in addition to the recently awarded $700 million-plus contract for military aircraft tires.
The ground tire contract involves supplying tires to the Army, Navy, Air Force and Marines, Michelin spokeswoman Lynn Mann said.
Michelin is already the majority supplier of U.S. Army tactical tires. The company invested $16 million to increase military tire production in order to meet the surge in demand related to Operation Iraqi Freedom.
"Michelin has provided top-quality tires to the U.S. military for decades," said Luc Minguet, COO of Michelin Americas Truck Tires. "Now, we'll add our expertise in logistics and supply chain management to streamline the timely supply of ground tire to U.S. troops at home and around the globe. Michelin is ready to step up as the one-stop source for all military tire needs."
Michelin will work with Science Applications International Corp. to manage the wholesale supply, storage and distribution functions for all ground tires used by the US military.
Headquartered in Greenville, S.C., Michelin North America (www.michelin-us.com) employs 22,300 and operates 19 major manufacturing plants in 17 locations.
Source : Michelin
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