Michelin to tackle challenges with 'transformation' of production plants

CUNEO, Italy—Michelin has outlined how it is "transforming" its tire production operations in response to a range of environmental, technological and human-resource challenges.

During a media day event held Oct. 4-5 at Michelin's Cuneo plant—its largest car tire factory in western Europe—the group set out how it is addressing challenges that have emerged over the last few years.

Michelin operates more than 70 production plants on five continents, producing around 200 million tires a year and employing 75,000 people.

Facility upgrades initiated "a few years ago" have already led to the creation of "environmentally conscious" facilities across the group, according to the French tire maker.

In the process, Michelin said it had halved the environmental impact of its tire plants over 14 years to 2019, but knows it must go a lot further.

The big challenge now for Michelin is to achieve "zero net emissions" by 2050, with an intermediate target to reduce CO2 emissions by 50 percent between 2010 and 2030.

This goal "can only be met by stepping up the group's efforts in terms of conservancy and the transition to green energy," it stated.

Meanwhile, Michelin said its efforts around digitalization and the use of AI had generated around $58.7 million (€60 million) of annual revenue with another $97.9 million expected in the next three years.

The program includes "Plant 4.0," which combines robotics with AI to enhance predictive maintenance, production, working conditions and the group's skills base.

The Clermont-Ferrand group is also focusing on human-resources aspects of its operations, with a view to further empowering employees.

"For the last 15 years, Michelin has developed ground-breaking managerial innovation at its plants to overhaul the work of production teams," it stated.

The management model, it claimed, contributes to "greater economic performance" across its plants while making the industrial professions more attractive.

Michelin is also investing in enhanced "social dialogue" through establishing closer working relationships with trade unions and employees.