Michelin's Camso brand growing in N.A. market

JUNCTION CITY, Kan.—Some things you don't need an almanac for. Those things, you just know—sense like rain on the breeze before one of those hearty, much-needed Midwest downpours.

And this is one of those things, something that Erick Bellefleur just instinctively senses to be on the horizon.

Yep. It's going to be a good growing season.

For Camso and Michelin.

Because the ag market itself is growing. And the expectations for farmers are changing as they work to increase crop yields and meet the demand that comes with growing populations. Farmers are being asked to do more with less, more efficiently. They need sustainability-driven, technologically advanced products that allow them to do just that.

And that's where Michelin comes in. More specifically, that's where Camso-branded tracks can play a bigger role.

"The technology that is being manufactured (at our Camso plants) in Kansas is a leading, cutting-edge technology that allows farmers to use a lot of horsepower and put high horsepower to work. But the key is that it does that while minimizing compaction to the soil," Bellefleur, senior vice president of Michelin's global Beyond Road business line, told Rubber News. "Those two elements are crucial for farmers.

"So when we talk about what is really important, it is those benefits of being able to put a lot of horsepower to work, low soil compaction and being able to do your agriculture and work the fields faster. Those benefits are actually being recognized by farmers, so there is more demand for track vehicles."

And that means more demand for Camso tracks from both OEMs and consumers. So Michelin is doing exactly what it needs to cultivate that growth it senses to be right there on the horizon.

It's investing.

The tire maker last month announced plans to invest $100 million to expand capacity at the Camso-branded rubber tracks factory in Junction City. That's a major investment and, as it turns out, it's probably an even bigger deal than it appears on the surface.

Because that 139,000-sq.-ft. Junction City facility is nearly new, at least for Michelin. The company invested about $36.4 million several years ago to convert and tailor an existing structure, bringing track production in Junction City online in 2020.

Michelin needed that extra track capacity then.

And it needs it even more now.

"There is a fundamental need to feed a growing population," Bellefleur said. "… We estimate there will be a need for 20-25 percent more food output in the next 10 years, and land is the same as it is going to be.

"We cannot just keep increasing the amount of land that we use to feed this growing population, so all of that growth is going to come from better yield efficiencies, and that is where we come into play," he said.

Camso tracks, because of their ability to better distribute the weight of the huge farming equipment, actually put less pressure on the soil than traditional radial ag tires. Less pressure means less soil compaction, and that means healthier, heartier crops because a less-compacted soil allows plant roots to anchor deeper and water to penetrate the soil more easily.

Michelin did not disclose the current capacity at either the Junction City or Emporia facilities, nor did it specify how much capacity will grow with the $100 million expansion. It did note, however, the funding will be aimed at expanding the plant's footprint. Construction, Bellefleur said, is underway and should be complete sometime in 2024.

With the investment, the facility also will see additions of equipment and specialized tools that enhance material flow and ergonomics.

Michelin expects employment at the Junction City plant to grow with the additions, from about 175 jobs to 375 jobs by 2026.

In the end, Bellefleur said, the facility—and the entirety of Camso track manufacturing—will be better positioned to serve the North American ag market.

"Our capacity is going to match the requirement of the market following this addition," Bellefleur said. "We are investing to get ahead of the growth curve."

Camso products are designed to work hard and last longer, while being gentler on the soils. They are designed, Bellefleur said, to allow farmers to do more with less.

But the products themselves do more with less, too.

More specifically, Camso does more with more-sustainable materials and more-sustainable manufacturing. At the same time, it is lessening its impact on the environment both through the performance of its products and the manufacturing of them, too.

"The topic of sustainability is quite vast, and we really are involved in all of them," Bellefleur said. "No. 1, our OEM customers are relying on us to demonstrate that we are having less and less of an impact inside of our activities. So that includes the raw materials that go into our products. Are they sustainable? Are they recycled materials?"

Camso, as part of the Michelin family of products, has access to the tire maker's material science arsenal, and that allows the brand to tap some of the company's cutting-edge technologies, Bellefleur said.

Moreover, that sustainability pledge at the heart of Michelin's operations filters right through to Camso's manufacturing facilities. Including that Junction City plant.

"Michelin measures and manages its environmental impacts using a company-wide standard assessment, and we are evaluating additional opportunities to go beyond our standard objectives with the expansion in Junction City," Bellefleur said.

True sustainability, he added, also requires expert engineering and top-notch manufacturing to ensure Camso products perform exactly how they should. Because delivering best-in-class products, Bellefleur said, that's sustainability in action.

"The product design is absolutely imperative to make sure that there is no waste. Because we are not seeing failures of our products prematurely, which is a waste of material when you think about it," Bellefleur said. "… It is really demonstrating to our customers that our activities are trending in the right direction and also being able to match the technology to work more efficiently."

Michelin and Camso know a thing or two about matching technologies. In fact, one of the greatest strengths in Michelin's agricultural arm is the diversification of its product offerings—offerings that Bellefleur said are made even stronger with the Camso family of products.

Today, Michelin's agricultural offerings stretch across a broad and all-encompassing portfolio that truly took shape when Michelin acquired the Magog, Quebec-based off-the-road products maker in a deal worth about $1.45 billion.

Hard to believe that was just five years ago.

"The ambition was really to create the leading player in the off-road space. So the combination of the two companies had a lot to offer; it was a really great match—I would say almost a perfect match—in terms of technologies," Bellefleur said.

Amazingly, he added, Michelin and Camso weren't competitors.

They managed to serve the same markets—even the same customers—and didn't compete because their technologies were so complementary. Michelin focused much more heavily on tires, while Camso, at least in agriculture, brought the rubber tracks expertise.

And when Michelin combined the two technologies—and the insights from the expertise in each—it created a well-rounded portfolio that can more holistically meet the needs of a rapidly growing industry.

"They (had) very much in common, but with different offerings," Bellefleur said. "So you put them together and that creates the great solutions that we have today."

The kind of sustainability-driven, technologically advanced solutions that better position Michelin for growth.

The kind of growth that you don't need an almanac to predict. The kind Bellefleur just knows is on the horizon.