Sourcing agreement covers more than 300,000 vehicles.

Michelin has won a key contract to supply UK government departments in a three-year framework agreement for tyre sourcing. With its service partner ATS Euromaster, Michelin has been appointed as one of two suppliers of tyres and associated services in the initiative led by the NHS Purchasing and Supply Agency, in conjunction with the Office of Government Commerce. The tyre scheme is available to all Public Sector Organisations across the UK, covering more than 300,000 vehicles. Michelin said the agreement also includes the option of a 12 month extension until January 2011 and “is estimated to be worth tens of millions of pounds”.

The company said: “The agreement has been set up to deliver significant efficiencies as a result of combined volumes, additional leverage and collaborative working between central government departments and wider public bodies nationwide.”

Michelin was selected as an approved supplier following a 12-month tendering period. Dunlop Tyres was reported to be the other supplier selected for the initiative.