Michelin looks to a hydrogen future

Michelin has released a strategy presentation which highlights its plans to go beyond its tyre-making heritage into new activities including hydrogen power and medical devices.

The tyre maker says diversification of its business is part of recovering from a pandemic-induced slowdown – with a €13.5 billion increase in annual revenues expected by 2030.

Michelin says it anticipates revenue in 2030 of €34 billion, compared to €20.5 billion in 2020.

It expects the fastest growth to come from its business making hydrogen power systems for vehicles, which it says will bring in €1.5 billion by the end of this decade.

Michelin and French auto parts manufacturer Faurecia together own a business called Symbio, which makes hydrogen fuel cell systems for light vehicles, utility vehicles and trucks.

The French tyre maker adds it hopes for rapid growth in the new fields of 3D metal printing and medical devices.

In its traditional tyre business, it says it would achieve growth by shifting some production to lower-cost locations and focusing on higher-margin tyres.

Michelin chief executive Florent Menegaux says: “Remaining true to our DNA, by 2030 the Group’s profile will have significantly changed with the ramp-up of new, high value-added businesses in both around and beyond markets.

“It is this ability to constantly reinvent itself that has underpinned Michelin’s strength for more than 130 years and which today gives us confidence in the future.”

Michelin expects to have fully recovered from the effects of the pandemic by the end of next year.