November 17, 2022

Mr. István Muzsay: by 2050 all our products will be produced in a sustainable way

by hta. org in interview

The Hungarian Tire Association (HTA) was founded in 2011 with the participation of seven international tyre companies with manufacturing capacity and representation in Hungary. In the first part of our series, in which we interview the leaders of the companies, you can read an interview with the President of the Association. This time, we spoke to the company manager of Michelin Hungária Ltd. about sustainability as a very important focus point, plans for the Nyíregyháza factory and the rise of all season tires, among other topics.

  • Tire manufacturers are coming up with new types of tires every year, and experts say that tires are getting better. So, where is the industry today compared to ten years ago? What are the main R&D trends?
  • At Michelin, we believe that the only way to has future for the mobility if it is increasingly safe, accessible, efficient and eco-friendly. Those four goals drive our innovation on products and services. With a 2020 budget of around €646 million, 6000 employees and 10,700 active patent portfolio worldwide, Michelin is an undisputed leader in R&D. It focuses on accelerating development of new ranges for the Michelin brand and other Group brands, continual progress on improving tire performance and services for each new generation of tires as well as disruptive innovations for truly original solutions. In this context, Michelin recently announced that by 2050, Michelin tires will be 100% sustainable, made entirely from renewable, recycled, biosourced or otherwise sustainable materials. Today, nearly 30% of the components used in the manufacture of tires produced by the Michelin Group are already made from natural, recycled or otherwise sustainable raw materials.
  • One result of R&D is the four-season tire. What do you think about this product group?
  • Michelin has pioneered in the all-season segment. The Michelin CrossClimate 2 tires are produced exclusively in France, Germany, Italy and Spain, in a total of seven European factories. Since its launch, the original Michelin CrossClimate has had a major impact on the European four-season tyre market, which has since seen annual growth of over 19%, in addition to being the only segment during the pandemic to grow steadily. Michelin CrossClimate 2 is another example of the Group’s sustainable strategy: safer, longer-lasting and more economical.
  • What are your plans for the Nyíregyháza plant?
  • In line with our sustainability strategy, we have recently introduced new technologies at our plant in Nyíregyháza that have enabled us to reduce volatile organic compounds in our production processes by 30%. Our next major environmental and energy conservation program is the transition to renewable energy sources. With an investment worth nearly HUF 10 billion, we can achieve a carbon-neutral operation of our plant in Nyíregyháza within five years. In our factory in Nyíregyháza, we focused on large-scale, high-performance products in accordance with market and customer needs. Our customers include Porsche, Land Rover, the AMG Group and soon Ferrari. As the largest company in Szabolcs-Szatmár-Bereg county, we are keen to continue supporting the county’s economy. Over the past 5 years, we have worked with more than 1,700 local suppliers.

  • Would you quantify the investments in development?
  • Over the past 25 years, we have spent more than HUF 170 billion on the development of our sites. The creativity and innovation capacity of our company is fueled by the talent and diversity of our more than 1,300 employees in Hungary. We build our relationship with our employees on trust, respect and dialogue. Our goal is to be one of the 10 most attractive employers in Hungary by 2030.
  • Sustainability is mentioned in almost all your answer. Is this the guiding principle that will define Michelin’s near future?
  • Indeed, at Michelin Hungary, we will make every effort to implement our sustainability ideas in the coming years. Our goal is to find the right balance between the development and personal fulfillment of our employees, the financial performance essential to our long-term growth and development, and the protection of our planet.
  • The Michelin name comes up quite often in connection with various social responsibility projects. Is this also related to the above mentioned topics?
  • Yes, definitely. It is important for us to support local communities. Our employees have done more than 20,000 hours of volunteer work over the past 25 years. We always take care and respond to the current social difficulties: we have helped health and education organizations with more than HUF 300 million over that past 25 years. We donate tires regularly, for example we have recently supported the National Ambulance Service with 260 tires. It is also part of our social responsibility to regularly organize traffic safety events, such as the 10th Michelin Bike Festival in Nyíregyháza.