All Sustainable – Tires & Parts News https://tiresandparts.net Your News Source for Everything Automotive Wed, 23 Jun 2021 10:59:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.0.13 Michelin presents two innovations to accelerate the development of sustainable mobility https://tiresandparts.net/news/michelin-presents-two-innovations-to-accelerate-the-development-of-sustainable-mobility/ https://tiresandparts.net/news/michelin-presents-two-innovations-to-accelerate-the-development-of-sustainable-mobility/#respond Wed, 02 Jun 2021 13:02:29 +0000 https://tiresandparts.net/?p=35488 At the 2021 Movin’On global sustainable mobility summit, Michelin has transformed ambition into action by presenting two innovations that address some of the major challenges impacting the future of mobility. Designed to make transportation more efficient while conserving resources, Michelin’s latest solutions represent core enablers in the efforts being pursued by Movin’On and its ecosystem […]

The post Michelin presents two innovations to accelerate the development of sustainable mobility appeared first on Tires & Parts News.

]]>
At the 2021 Movin’On global sustainable mobility summit, Michelin has transformed ambition into action by presenting two innovations that address some of the major challenges impacting the future of mobility. Designed to make transportation more efficient while conserving resources, Michelin’s latest solutions represent core enablers in the efforts being pursued by Movin’On and its ecosystem to foster mobility that is gentler on the planet.

The WISAMO project, an innovative solution to help decarbonize maritime shipping.

The Wing Sail Mobility (WISAMO) project is an automated, telescopic, inflatable wing sail system that can be fitted on both merchant ships and pleasure craft. The system is the product of a collaborative venture between Michelin Research & Development and two Swiss inventors who share the Group’s “all-sustainable” vision.

The inflatable wing sail harnesses the wind, a free, universal and inexhaustible source of propulsion. Its revolutionary design enables a ship to reduce its fuel consumption and thereby have a positive impact on the environment by lowering CO2 emissions.Designed and developed by the WISAMO project team, the system is installable on most merchant ships and pleasure craft. Especially suitable for ro-ro ships, bulk carriers and oil and gas tankers, it can be fitted as original equipment on newbuilds or retrofitted on in-service vessels.

The wing’s range of use is one of the market’s broadest, with proven effectiveness on many points of sail, and especially when close-hauled (windward). It can be used on every maritime shipping route. The telescopic mast is retractable, making it easy for a ship to enter harbors and pass under bridges. In all, the system can improve a ship’s fuel efficiency by up to 20%*.

A collaboration with Michel Desjoyaux, a world-renowned skipper and ambassador of the project, enables Michelin’s research teams to perfect its development. His input and technical knowledge of this seasoned sailor will enable it to be tested in actual maritime shipping conditions. As Desjoyeaux points out, “the advantage of wind propulsion is that wind energy is clean, free, universal and totally non-controversial. It offers a very promising avenue to improving the environmental impact of merchant ships.”

The WISAMO system will first be fitted on a merchant ship in 2022, when Michelin expects it to go into production following completion of the trial phase.

The WISAMO project is Michelin’s contribution to enabling greener, softer maritime mobility in advance of future regulations. Michelin is also taking action to reduce the environmental impact of its supply chain. In addition to this commitment, and in line with its strategic plan, the Group is basing a portion of its growth on the development of new businesses.

A track-proven tire with 46% sustainable content

At the 2021 Movin’On Summit, Michelin is also set to unveil a racing tire containing 46% sustainable materials, fitted to the GreenGT Mission H24 hydrogen-powered prototype developed for endurance racing.

With its totally new innovation engineered for motorsports, Michelin has found what many observers thought was impossible: a way to make a tire with high sustainable content that still delivers superior on-track performance.

This very high percentage was achieved by increasing the tire’s natural rubber content and using recycled carbon black recovered from end-of-life tires.

Other bio-sourced or recycled sustainable materials used in the tire include such everyday items as orange and lemon rind, sunflower oil, pine resin and recycled steel from aluminum cans.

2021 Movin’On: Michelin presents two innovations to accelerate the development of sustainable mobility

 

  • The WISAMO project, an innovative solution contributing to the decarbonization of maritime shipping

 

  • A high-performance racing tire containing 46% sustainable materials

 

  • Two further illustrations of the Group’s “all-sustainable” strategy

 

At the 2021 Movin’On global sustainable mobility summit, Michelin has transformed ambition into action by presenting two innovations that address some of the major challenges impacting the future of mobility. Designed to make transportation more efficient while conserving resources, Michelin’s latest solutions represent core enablers in the efforts being pursued by Movin’On and its ecosystem to foster mobility that is gentler on the planet.

The WISAMO project, an innovative solution to help decarbonize maritime shipping.

The Wing Sail Mobility (WISAMO) project is an automated, telescopic, inflatable wing sail system that can be fitted on both merchant ships and pleasure craft. The system is the product of a collaborative venture between Michelin Research & Development and two Swiss inventors who share the Group’s “all-sustainable” vision.

The inflatable wing sail harnesses the wind, a free, universal and inexhaustible source of propulsion. Its revolutionary design enables a ship to reduce its fuel consumption and thereby have a positive impact on the environment by lowering CO2 emissions.Designed and developed by the WISAMO project team, the system is installable on most merchant ships and pleasure craft. Especially suitable for ro-ro ships, bulk carriers and oil and gas tankers, it can be fitted as original equipment on newbuilds or retrofitted on in-service vessels.

The wing’s range of use is one of the market’s broadest, with proven effectiveness on many points of sail, and especially when close-hauled (windward). It can be used on every maritime shipping route. The telescopic mast is retractable, making it easy for a ship to enter harbors and pass under bridges. In all, the system can improve a ship’s fuel efficiency by up to 20%*.

A collaboration with Michel Desjoyaux, a world-renowned skipper and ambassador of the project, enables Michelin’s research teams to perfect its development. His input and technical knowledge of this seasoned sailor will enable it to be tested in actual maritime shipping conditions. As Desjoyeaux points out, “the advantage of wind propulsion is that wind energy is clean, free, universal and totally non-controversial. It offers a very promising avenue to improving the environmental impact of merchant ships.”

The WISAMO system will first be fitted on a merchant ship in 2022, when Michelin expects it to go into production following completion of the trial phase.

The WISAMO project is Michelin’s contribution to enabling greener, softer maritime mobility in advance of future regulations. Michelin is also taking action to reduce the environmental impact of its supply chain. In addition to this commitment, and in line with its strategic plan, the Group is basing a portion of its growth on the development of new businesses.

A track-proven tire with 46% sustainable content

At the 2021 Movin’On Summit, Michelin is also set to unveil a racing tire containing 46% sustainable materials, fitted to the GreenGT Mission H24 hydrogen-powered prototype developed for endurance racing.

With its totally new innovation engineered for motorsports, Michelin has found what many observers thought was impossible: a way to make a tire with high sustainable content that still delivers superior on-track performance.

This very high percentage was achieved by increasing the tire’s natural rubber content and using recycled carbon black recovered from end-of-life tires.

Other bio-sourced or recycled sustainable materials used in the tire include such everyday items as orange and lemon rind, sunflower oil, pine resin and recycled steel from aluminum cans.

As a real-world technological laboratory, motorsports enable Michelin to develop and test new high-tech solutions in extreme usage conditions. With this innovative partnership, Michelin is showcasing its ability to incorporate an ever-higher proportion of sustainable materials into its products without compromising on their performance.

This year, Michelin announced its commitment to using 100% sustainable materials in all its tires by 2050. This commitment will reach an initial milestone in 2030, with a Group-wide target of having 40% sustainable materials in its tires.

Alongside its commitment to integrating sustainable materials into its tires, Michelin also uses eco-design processes to attenuate its tires’ environmental impact at every stage in their lifecycle, from raw materials sourcing and production to road use and recycling.

We share a core value with Movin’On and its partners, namely the deep belief that mobility, and movement in the broadest sense of the term, are inherent to life and a source of progress,” says Michelin Managing Chairman Florent Menegaux. “The two innovative solutions we are presenting at this year’s global sustainable mobility summit offer tangible, real-world proof of our determination to make mobility increasingly sustainable.”

 

The post Michelin presents two innovations to accelerate the development of sustainable mobility appeared first on Tires & Parts News.

]]>
https://tiresandparts.net/news/michelin-presents-two-innovations-to-accelerate-the-development-of-sustainable-mobility/feed/ 0
Michelin presents its “All Sustainable” strategy for 2030 https://tiresandparts.net/news/michelin-presents-its-all-sustainable-strategy-for-2030/ https://tiresandparts.net/news/michelin-presents-its-all-sustainable-strategy-for-2030/#respond Sun, 11 Apr 2021 05:41:32 +0000 https://tiresandparts.net/?p=34843 At the Group’s Capital Markets Day, Florent Menegaux, Managing Chairman, and Yves Chapot, General Manager and Chief Financial Officer, accompanied by all the members of the Group Executive Committee, presented Michelin in Motion, Michelin’s “All Sustainable” strategy for 2030. Mr. Menegaux explained the Group’s “All Sustainable” vision, which is based on the constant search for […]

The post Michelin presents its “All Sustainable” strategy for 2030 appeared first on Tires & Parts News.

]]>
At the Group’s Capital Markets Day, Florent Menegaux, Managing Chairman, and Yves Chapot, General Manager and Chief Financial Officer, accompanied by all the members of the Group Executive Committee, presented Michelin in Motion, Michelin’s “All Sustainable” strategy for 2030.

Mr. Menegaux explained the Group’s “All Sustainable” vision, which is based on the constant search for the right balance between People, Planet and Profit. He also presented the Group’s ambitions for 2030, based on twelve indicators covering its environmental, social, societal and financial performance (see details on page 4).

In particular, he emphasized the Group’s commitment to:

People

  • achieving an employee engagement rate of more than 85%
  • increasing the percentage of women in management positions to 35%
  • setting the global standard in workplace safety, with a TCIR of less than 0.5

Planet

  • sharply reducing its CO2 emissions, in Scopes 1 and 2 (by 50% compared with 2010) and in transportation-related Scope 3, with the goal of achieving carbon neutrality in these scopes by 2050
  • sharply increasing the sustainable raw materials content in all its products to 40% by 2030, in line with its target of 100% by 2050

Profit

  • driving sustained growth, with an average 5% increase per year in sales between 2023 and 2030, once the current Covid-19-related crisis is over
  • deriving 20% to 30% of sales from non-tire businesses
  • guaranteeing the creation of significant value, with a more than 10.5% ROCE between 2023 and 2030.

New non-tire growth territories

Michelin will continue to expand, invest and innovate in its tire businesses. Post-Covid mobility trends and the accelerating growth of the electric vehicle market represent genuine growth opportunities for the Group, which has developed unrivaled technological leadership in the design and manufacture of tires purpose-engineered for EVs. In the road transportation segment, the Group will selectively focus on creating value, while in Mining, Earthmover, Agricultural, Aircraft and other specialty tires, Michelin intends to remain the benchmark by capitalizing on the differentiation of its products and services.

Led by its capacity for innovation and its materials expertise, Michelin is also looking to drive strong expansion in five around and beyond tire business segments: Services & Solutions, flexible composites, medical devices, metal 3D printing and Hydrogen mobility.

  • In Services & Solutions, the Group is going to broaden and deepen its portfolio of fleet solutions, in particular by leveraging smart objects and the value of its collected data.
  • Michelin also hopes to expand significantly in the very fast growing flexible composites market (conveyors, belts, coated fabrics, seals, etc.) by pursuing its value-creating mergers and acquisitions strategy and incubating new businesses.
  • Medical devices also represent a growth opportunity in the years ahead.
  • In metal 3D printing, the Group has developed unique expertise that supports the ability of AddUp, its joint venture with Fives, to market a comprehensive range of tailor-made solutions for manufacturers.
  • In Hydrogen mobility, the Group is seeking to become a world leader in hydrogen fuel cell systems through Symbio, its joint venture with Faurecia.

An initial milestone in 2023

During the Capital Markets Day, Michelin also presented the various industrial competitiveness drivers that will deliver €80 million in savings a year, net of inflation, between 2020 and 2023. Moreover, SG&A expenses in the tire business will be reduced by €65 million, net of inflation, by 2023 and by a total of €125 million by 2025.

 

Yves Chapot then announced the Group’s financial objectives for 2023. That year, the Group expects to report around €24.5 billion in sales, more than €3.3 billion in segment operating income3, €3.3 billion in structural free cash flow (total over 2022 and 2023), and a ROCE of 10.5%.

In addition, the Group has begun to calculate the costs of some of its negative externalities, like carbon emissions and water and solvent use, and is committed to reducing them by around 10% by 2023.

Lastly, the Group has decided to revise its dividend policy, with the new goal of paying out 50% of earnings before non-recurring items in 2021.

During the Capital Markets Day, Mr. Menegaux noted: “With this new Michelin In Motion strategic plan, the Group is embarking on an ambitious growth dynamic for the next ten years. I am convinced that the engagement and capacity for innovation of our teams will enable us to deliver a harmonious blend of sustained business performance, continuous employee development, and a commitment to the planet and our host communities. Even as it remains true to its 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.”

Mr. Chapot added: “Despite the current crisis and the still uncertain economic environment, Michelin has demonstrated the resilience of its fundamentals and the validity of its business model. This new Michelin In Motion strategic plan will give the Group the means to drive new growth and reduce the impact of its main negative externalities. Michelin will continue to develop its tire operations while integrating new businesses, with a constant focus on maintaining a robust balance sheet and firm margins.”

Overview of the announced Ambitions for 2030:

AMBITIONS INDICATOR

 

2030
Set the global standard in employee engagement Engagement rate >85%
Set the global standard in workplace safety TCIR(1) <0.5
Set the standard for employee diversity and inclusion IMDI(2) 80/100 points
Lead the industry in creating customer value Partner NPS(3)

End customer NPS(3)

up 10 pts vs. 2020

up 5 pts vs. 2020

Drive significant growth in sales, particularly in segments other than tire manufacturing and distribution Average growth in sales per year, 2023 to 2030

Percentage of consolidated sales from businesses other than tire manufacturing and distribution

5%

 

Between 20% and 30%

Continuously create value ROCE(4) >10.5%
Maintain the strength of the MICHELIN brand Brand vitality quotient(5) up 5 pts vs. 2021
Maintain the sustained pace of product and service innovation Product/offers vitality index(6) >30%
Achieve carbon neutrality in manufacturing and energy use by 2050 Scopes 1 and 2 CO2 emissions down 50% vs. 2010
Help achieve carbon neutrality in use Products energy efficiency (scope 3) up 10% vs. 2020
Set the global standard for the environmental footprint of manufacturing facilities i-MEP(7) down one-third vs. 2020
Ensure that tires are made entirely of sustainable materials Sustainable materials rate 40%

 

  • Total Case Incident Rate: the number of accidents and cases of occupational illness recorded per 200,000 hours worked
  • Diversities and inclusion management indicator
  • In 2021, two composite indicators will be created:

The “End Customer” NPS, a weighted average of the consumers and business customers clusters;

The “Partner” NPS, a weighted average of the OEMs and business dealers clusters.

  • In calculating consolidated ROCE, goodwill, acquired intangible assets and shares in equity-accounted companies are added back to economic assets. Net operating profit after tax (NOPAT) includes the amortization of acquired intangible assets, as well as profit from equity-accounted companies (see section 3.6 of the 2020 Annual Results Guide, available at michelin.com).
  • Composite indicator used to measure the brand’s vitality.
  • Percentage of sales from products and services introduced in the last three years.
  • The Industrial Michelin Environmental Performance (i-MEP) indicator will be used to track the environmental impacts of the Group’s manufacturing operations over the next ten years. It will make these impacts easier to understand by focusing on five priority areas: energy use, CO2 emissions, organic solvent use, water withdrawals, and waste production. The i-MEP is described in more detail in the methodological note in section 4 of the 2020 URD.

Summary of 2023 objectives:

2023 sales

 

Around €24.5 billion at January 2021 exchange rates
2023 segment operating income

Segment operating margin

More than €3.3 billion at January 2021 exchange rates

13.5%

2023 segment operating margin, Automotive and related distribution segment >12%
2023 segment operating margin, Road Transportation and related distribution segment >10%
2023 segment operating margin, Specialty businesses and related distribution segment >17%
Total structural free cash flow8, 2022-2023

 

€3.3 billion
2023 ROCE

 

>10.5%
Average growth in sales excluding tires and related distribution, 2019-2023 5%
Industrial efficiency, 2020-2023 €80 million in savings a year, net of inflation
Reduction in SG&A expenses in the tire business through 2023 €65 million in savings, net of inflation
Cost of negative externalities, 2019

Cost of negative externalities, 2023

€(330) million

€(300) million

Payout ratio as from 2021 50% before non-recurring items

Indicator described on page 3

Average growth of 5% a year projected through 2030.

At the average exchange rate for January 2021

Please refer to the Capital Markets Day presentation available on www.michelin.com/en/ for the 2023 detailed scenario.

The post Michelin presents its “All Sustainable” strategy for 2030 appeared first on Tires & Parts News.

]]>
https://tiresandparts.net/news/michelin-presents-its-all-sustainable-strategy-for-2030/feed/ 0