Michelin aims for 30% cost reduction in future plants

Montreal, Canada – Michelin will reduce production costs by 30% at all new greenfield passenger car tire plants, compared to levels at its existing facilities, a senior official has stated.

Additionally, the French group will upgrade its existing plants in alignment with these solutions, to reduce unit capex cost by 15%.

The “differentiation of products” will remain unchanged, Michelin noted.

The Clermont-Ferrand-based group is also expecting to reduce costs by least €250m by 2020 through the use of its digital initiative, the OPE.

Launched in late 2012, the OPE programme is a user-oriented, supply-chain facility for both customers and Michelin network operators globally.

OPE is designed to track raw materials and semi-finished-products inventories in real time and redefine how Michelin interacts with customers.