TNT to run Michelin center network

GREENVILLE, S.C. (July 24)—Michelin North America Inc. has signed a six-year, multimillion-dollar pact with TNT Logistics North America under which TNT will operate Michelin's tire distribution centers in the U.S. and Canada. Specific financial details were not disclosed, but the tire maker said it could realize a capital gain of about $26 million on the sale of some of its distribution centers to a joint venture managed by Lexington Corporate Properties Trust. TNT will begin operating the center network, which covers 18 locations, in early August. The agreement calls for TNT to acquire certain operating assets from Michelin and offer employment to qualified Michelin distribution network employees. About 450 are employed presently in the U.S. and 150 in Canada, Michelin said.