U.S. Military Selects Michelin as Logistics Provider for Ground Tires

GREENVILLE, S.C., Jan. 25, 2007 -- The United States military once again has selected Michelin to manage its military tire program. Today, the Defense Supply Center - Columbus, Ohio (DSC-C) awarded Michelin Americas Truck Tires the 10-year $1.7 billion contract to provide ground tires for every type of wheeled vehicle for all military branches (Army, Navy, Air Force, Marines) around the world. This contract is in addition to the recently awarded $700 million-plus contract for military aircraft tires.

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. (SAIC) to manage the wholesale supply, storage and distribution functions for all ground tires used by the U.S. military. DSC-C will retain only the contracting functions for tires. Michelin will provide 100 percent of the military's ground tire needs through its own and competitive tire sourcing.

This allows the U.S. Department of Defense to take advantage of the most recent technologies, expertise, and business practices of private industry to provide a more responsive supply / support program for its forces, whether they are on U.S. soil or deployed worldwide. The move is expected to save taxpayers hundreds of millions of dollars over the life of the contract.