Michelin has announced the sale of its Sri Lanka-based Midigama Tyre Division and Casting Product Division plants, which produce bias tires and tracks for compact construction equipment, to the CEAT Group. CEAT, a recognized industry player, is considered a better strategic fit for these activities.
The sale includes the Camso brand, a well-known name in these segments, which will transfer to CEAT after a three-year licensing period. The transaction, subject to regulatory approval, ensures job security, business continuity, and customer service stability for Michelin’s global customers.
Focus on Value-Driven Offerings
As part of its strategic realignment, Michelin will concentrate on its most value-accretive construction products, including radial tires, solid tires, and assemblies, exiting its bias tires and construction tracks businesses. However, the Group will maintain its other manufacturing activities in Sri Lanka, where it plans to modernize production facilities and enhance operational performance.
Commitment to Employees and Smooth Transition
Michelin and CEAT have agreed that no layoffs will occur at the two plants. Both companies will collaborate to ensure a smooth transition for all 1,587 employees, including those in related support functions. Appropriate measures will be taken to create favorable conditions for the handover.
Customer and Supplier Assurance
Both companies are dedicated to ensuring uninterrupted service for customers and suppliers. They will work closely to provide seamless support during and after the transition.
Leadership Perspectives
Nour Bouhassoun, Senior Vice President, Beyond Road Business Line at Michelin, stated: “Michelin firmly believes that CEAT is the right fit to carry forward our bias tires and tracks for compact construction equipment business. Both companies are committed to a smooth transition for employees and uninterrupted service for customers and suppliers. This operation aligns with Michelin’s sustainable growth strategy as we reshape our Beyond Road business.”
Arnab Banerjee, Managing Director & CEO of CEAT, commented: “The Camso brand perfectly complements CEAT’s off-highway tire business, enhancing our margin profile and growth strategy. Access to premium customers, a reputable brand, and a skilled workforce excites us about this acquisition. We see strong synergies between CEAT and Camso and are confident both brands will benefit significantly from their complementary strengths.”
