Michelin invests in Iberian tyre distribution

Michelin has opened a new distribution centre for the Iberian peninsula following investment of some 32.5 million euros. The goal of the logistics centre located in Illescas, near Toledo in Spain is to optimise logistics performance in Spain, Andorra and Portugal, not to mention the Balearics, the Canaries, the Azores and Madeira.

“The construction of the new distribution centre will enable us to get closer to our customers,” said Jose Rebollo , president of Michelin Spain and Portugal, a sentiment that was echoed by Carlos Echanove, Client Services director for Europe: “The notion of customer-centric service has become essential and determines future success in our business, including to continue to see our sales grow in Europe.”

The site is located on a 140,000 m² plot of land and the new centre covers over 52,000 m², with potential for expansion to 80,000 m². The site is already home to 210,000 passenger tyres, 28,000 industrial tyres, as well as 30,000 motorbike products and 3,500 agricultural tyres. In total, the centre has space for some 400,000 tyres and 40 docking bays. A flow of between 100 and 120 trucks is expected each day.

According to Research and Markets data published earlier in 2016, the tyre market in Spain is projected to reach US$2.85 billion by 2020. While Michelin and Bridgestone operate tyre manufacturing plants in the country, other major tyre companies like Continental, Pirelli, Goodyear, Yokohama and Belshina rely on the import route to sell tyres in the country.

The replacement tyre segment in the country accounted for a majority market share in 2014, and the segment is anticipated to witness higher growth over the forecast period as compared to OEM tyre segment.

Spain is the fourteenth largest economy in the world, and the fifth largest economy in the European Union. The country’s vehicle fleet is dominated by passenger cars, which account for more than 65 per cent of the total vehicle fleet, followed by commercial vehicles and two-wheelers. As a result, in 2014 the passenger car tyre segment accounted for the largest share in Spain’s tyre market, followed by the light commercial vehicle tyre, two-wheeler tyre, medium & heavy commercial vehicle tyre, and OTR tyre segments. The passenger car tyre segment is anticipated to continue its market dominance through the forecast period.