Michelin is selling its two Sri Lanka-based plants that manufacture bias off-highway tyres and tracks for compact construction equipment to the Ceat Group. The US$225 million deal also includes the Camso brand at the end of a three-year licensing period.
We understand that Ceat (part of the RPG Group) can sell construction equipment tyres and tracks in any part of the world now. Michelin, through the Camso brand, will continue to sell products in other categories, including agricultural tracks, for the next three years. Ceat will get complete ownership of Camso in 2027.
The Indian tyre manufacturer enjoys a strong position with its materials handling tyres, and tractor and harvester tyres and tracks in Europe and North America.
As well as widening its product base, the deal gives Ceat access to a global customer base including over 40 international OEMs and distributors.
“The Camso brand is an excellent fit with the growth strategy of Ceat’s off-highway tyre business,” comments Arnab Banerjee, Ceat managing director and CEO.
There was no mention of the Camso deal at a press meeting at the recent Italian EIMA show, but Ceat management did talk of ambitious plans to grow its rubber track business and become a leading global player in the high margin off-highway segment, and particularly with tractors and combines in Europe and North America.
Prior to the Camso deal, the Indian manufacturer’s rubber track portfolio was limited to two tractor and two harvester tracks. With two plants making rubber tracks in Bombay soon to be bolstered by two more Camso plants in Sri Lanka, Ceat’s growth in the rubber track segment looks set to sky rocket.
Michelin acquired Camso in 2018. The Canadian company booked 2023 revenues of approx. US$213 million. The deal is subject to regulatory approvals from the relevant authorities.
In a press statement, the Michelin Group says it will focus mainly on its radial technology tyre for the construction sector and will stop the production of bias tyres in its Olsztyn factory in Poland.
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Images: Camso
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