Michelin buys PTG and Teleflow
On 12 November Michelin announced it had bought PTG and Téléflow – both industry leaders in tyre pressure control systems which allow users to monitor and adapt tyre pressures according to the terrain and conditions of use. These acquisitions signal Michelin’s intention to become the global leader for Central Tyre Inflation Systems (CTIS) in the agricultural market. No pricetags associated with the purchases have yet been revealed, but Europe is known to be the centre of the segment, which is valued at around US$1.7 billion in 2017.
PTG was founded in 1991 by Martin Tigges and employs 12 people at its headquarters in Neuss, Germany, where they manufacture and sell tyre inflation systems for vehicles and trailers. Experts in the agricultural world, PTG is an innovative company with differentiating, patent protected and non-intrusive products which it adapts for each segment of agro-vehicles. Well known for the AIRBOX/mobil system for inflation, axle by axle on stationary vehicles, PTG have also developed the RDS system which brings fully automated pressure adjustment to vehicles whilst on the move.
Asked about the acquisition joint PTG CEO, Peter Tigges said: “I am delighted that PTG have found a partner in Michelin that shares our passion for innovation, technology and customer service”.
A further statement from PTG added: “Michelin intends to market global solutions with PTG, combining different technologies like Michelin Evobib Adaptive Design Technology and PTG tyre inflation systems to meet farmers and contractors demanding expectations for agriculture.
“The relationship between PTG and its customers remain strong, as PTG continues to provide leading products and service. PTG will keep its identity, logo, products and distribution network. The current management will continue to lead the company into the future. For more than 26 years PTG has successfully developed, produced and distributed tyre inflation systems for agricultural vehicles, nationally and internationally.
“Now PTG has the opportunity to better market its expertise and accelerate product development for the benefit of all; customers and distribution partners alike.”
Established in 1993 by Stéphane Fazekas, Téléflow is based in Roanne, France, and employs 39 people who design, manufacture and sell tyre pressure control systems. These allow pressures to be adapted according to the terrain by the use of special patented valves. As one of the leaders in central tyre inflation systems, Téléflow is the biggest supplier of tyre pressure control systems to the military sector and has a close collaboration with many OE manufacturers. The company’s best known product allows users to select the terrain and load being transported; the In-Motion Control system automatically adapts the tyre pressures to the conditions on the move.
Téléflow CEO, Guillaume Fazekas commented: “Having developed pressure control systems for over 20 years, the possibility to work alongside Michelin to bring industry leading products and systems to market is an amazing opportunity”.
Speaking about the acquisitions, Emmanuel Ladent, president of Michelin Agriculture said: “Our ambition is to continue innovating to provide increasingly complete solutions, guaranteed by Michelin, that help farmers optimise the performance of their machines while protecting their soil.
“It also marks the dawn of a new approach for the Michelin Agricultural Product Line. The first concrete example of this is Zen@Terra, which combines Michelin EvoBib tyres with Adaptive Design Technology, CTIS from PTG and Téléflow, and easy-to-use in-cab dashboard control systems, all backed by a Michelin warranty. This is a complete solution for farmers; it manages all aspects of tyres and their interaction with the ground, both in the field and on the road, and ultimately it will help maximise yields, efficiency and economic performance for farmers”.
Automatic tyre inflation systems is set to become a multi-billion dollar global industry during the course of the next decade. According to a report produced by Future Market Insights, the market is anticipated to reach revenue of over US$1.500 billion in 2017 and grow at a steady compound annual growth rate (CAGR) of 5.6 per cent during the 10 year period between 2017 and 2027. The forecast predicts the market to reach a revenue of over $2.7 billion by the end of the forecast period in 2027.