Things are really rolling at Michelin North America. The tiremaker announced this week that it has secured a contract with the U.S. military to supply tires for every type of wheeled vehicle used by the Army, Navy, Air Force and Marines. That amounts to 3.87 million tires, $1.7 billion and a whole lot of business for the Greenville-based company.

This contract is in addition to a more than $700 million deal signed late last year for Michelin to provide logistical support for Army and Air Force aviation tires. Providing tires and services to the military is nothing new for Michelin, and this new contract demonstrates the confidence that military leaders have in Michelin to do the job right and to do it economically.

Michelin spokeswoman Lynn Mann told Greenville News writer Jenny Munro: "We consider this to be very significant. It says Michelin is a great solution provider."

This week's announcement means more than more business for Michelin. The Defense Supply Center-Columbus (Ohio), which announced the contract, said the logistics contract will save taxpayers $173 million over 10 years. Michelin already has invested about $16 million to increase its tire production to meet increased demand because of the Iraq war.

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The company does not yet know if the $1.7 billion tire contract will mean more jobs or where such jobs might be placed. Even if it means no added jobs, a contract of this size certainly is good news for the company's 7,600-plus employees in South Carolina, including more than 4,000 in Greenville County.

It's also reason for South Carolina to be proud of this company that has its North American headquarters in Greenville, and it's a testament to the value of drawing corporate headquarters to the area.

Not only does Michelin employ thousands of South Carolinians, it has spent more than $2.28 billion on capital investments in the state, it pays $12 million annually in property taxes and $1 million annually in sales taxes. Its economic impact is staggering. And almost certainly those who benefit from an already strong Michelin will benefit even more as it meets these demands from the U.S. military.

It stands to reason, then, that when Michelin does well, South Carolina does well.

Post a Comment   View All Comments kidcounselor Too bad the administration did not go the 'no-bid contract' route, huh! kidcounselor Posted: Mon Feb 05, 2007 10:25 am sabo954 Well, hopefully the government learned their lesson from our situation. sabo954 Posted: Sun Feb 04, 2007 7:35 pm jbreaze Folks, let's be realistic. I am very familiar with this contract so I know what I am talking about. I will not mention how to protect the guilty. This contract is a joint venture between several companies. If the French tried to control production, which they cannot do per the terms and conditions of the contract which is with Michelin Aircraft Tire Company, LLC, a Delaware company, there are options in place to ensure the government is protected. Everyone involved is very aware of the circumstances that could happen, but that is no different than a US tire plant being destroyed by a natural disaster or fire. I also know of many other U. S. Government contracts that are with foreign companies. The bottom line is, if American companies could do it better and less costly (saving us tax dollars), they would have the contracts. Quit worrying about something this silly and go after Wal-Mart for having everything made in China. At least the lion's share of these tires are being made in the USA. By the way, THA_REBEL, no military tires being installed on US Aircraft are manufactured in Thailand. jbreaze Posted: Sun Feb 04, 2007 3:58 pm sabo954 When I was at Sheppard AFB doing the heavily accelerated and concentrated classroom portion of my technical training, we were short on machines because France wouldn't send us the parts because they didn't agree with us going into Iraq. Depending on foreign industry for military assets = VERY bad idea. sabo954 Posted: Sun Feb 04, 2007 1:52 am Tha_Rebel Don't think for one second that all this profit will be for here or FRANCE. You all WOULD NOT BELIEVE how much of Michelins business IS being sent OVER SEAS!! Thailand is TAKING lots of peoples jobs from here. Isn't this gonna be GREAT, another country making tires for our MILITARY????????? Tha_Rebel Posted: Sat Feb 03, 2007 10:34 pm sabo954 Like some others in here said: at least some local people are going to benefit as opposed to some other part of the country. Penelope is right though, its sad that the French get a cut. But then again, they are getting increasingly larger cuts from other Americans companies such as GE. AlanS, do you have to bellyache about everything? I bet you have ulcers and high blood pressure. sabo954 Posted: Sat Feb 03, 2007 12:46 pm penelope541 Where are all the NAFTA/CAFTA enemies? Guess it is a horse of a different color when the PROFIT from a local company goes to FRANCE! Oh, well... penelope541 Posted: Sat Feb 03, 2007 12:15 pm TedTheJackal Reason, justice, & equity never had weight enough on the face of the earth to govern the councils of men. It is interest alone which does it, and it is interest alone which can be trusted. -Jefferson TedTheJackal Posted: Sat Feb 03, 2007 11:35 am AlanS Yep, might as well keep the cycle going. No better way to maintain a state of perpetual war than to make certain private citizens profit from it as well. AlanS Posted: Sat Feb 03, 2007 8:33 am Damanvan Well someone is going to get that money may as well be in the upstate. Damanvan Posted: Sat Feb 03, 2007 8:30 am Post a Comment   View All Comments