January 9, 2007 (by Lieven Dewitte) - Michelin North America has won a contract to supply aircraft tires to the U.S. Air Force and Army that will amount to more than $700 million over 10 years, including the contract option, company officials said Monday.
The deal includes production, storage and distribution of aircraft tires used by the U.S. Department of Defense.
The five-year contract calls for a minimum of $368.4 million to supply tires for Air Force and Army aircraft, and a five-year option brings the total value to about $720 million.
Besides the F-16 Fighting Falcon, fighters like the F-15 Eagle, bombers such as the B-52 Stratofortress and attack aircraft like the A-10 Warthog and the AH-64 Apache helicopter are included. Also included are cargo aircraft like the C-130 Hercules and C-5 Galaxy, tankers such as the KC-135 Stratotanker and training aircraft such as the T-38 Talon.
"If there's an aircraft with tires, it's covered under this contract," a Michelin official said.
Michelin has an existing contract with the Navy that requires the company to deliver aircraft tires anywhere in the continental United States in less than 48 hours and anywhere in the world, including those for planes deployed on aircraft carriers, in less than 96 hours.