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Yellow Roadway expands relationship with Michelin

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Yellow Roadway Corp. will significantly expand its relationship with Michelin North America Inc. for new tires and retreads following its decision not to renew its existing tire and wheel service agreement with Bandag Inc.

Michelin also will supply Yellow Roadway companies, including Yellow Transportation and Roadway Express, with well over half of the new tires and retreads required for their 450,000 consolidated wheel positions.

Yellow Corp. acquired Roadway Corp. in December 2003. Roadway's existing outsourcing deal with Bandag obligates Yellow Roadway to repurchase all tires and wheels owned by Bandag (worth an estimated $37 million) and used on its vehicles by Aug. 1, 2004.

"Since the acquisition, we continue to look for and find new, more efficient synergies," says Mike Smid, president of enterprise services and chief integration officer for Yellow Roadway Corp.

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