Michelin Will Take Role in Industry Consolidation
Michelin wants to play its part in the consolidation of the tyre industry, the company’s director of financial operations, Marc Henry told Germany's Boersen-Zeitung. According to these reports and others circulated by the Reuters news agency, Michelin will not simply remain an observer, “depending on the possibilities” of the market. Nevertheless this does not mean the company is likely to surrender its "societe en commandite par actions" status which protects it from takeover attempts as it concentrates power in the hands of the company's founding family.
With the economic situation still looming large, “we do everything to keep the jobs in Europe even during the crisis,” Marc Henry commented, pointing out that investments in China, India and Brazil have been used almost exclusively to satisfy the local demand in these markets. In addition the strong rise in natural rubber prices “will hit (Michelin) hard” this year, he reportedly warned.
Despite all the opposing factors, the company still expects positive 2010 cash flow, Henry said.
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