Michelin is the latest company to announce its exit from Russia, confirming that it is selling its two local companies for an undisclosed sum.
The French tire giant is selling Michelin Russia Tyre Manufacturing Company and Camso CIS to Power International Tires, a known partner of Michelin and one of Russia’s largest tire distributors. The agreement will retain 250 employees, most of whom will work at the Michelin plant in Davydovo.
At its peak, this factory employed 750 people and produced up to 2 million tires per year, primarily for Russia and select markets in Northern Europe. Michelin suspended industrial activities in the country on March 15, 2022 following Russia’s invasion of Ukraine.
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Michelin says it was unable to pass its Russian company on to local management, noting “major difficulties” in ensuring these companies would be autonomous. Michelin added that it “allowed those who wished to leave the Company under good conditions to do so,” noting that it was not possible for Power International Tires to retain all staff.
The company first entered the Russian market in 1997 and opened its local production plant in 2004, becoming the first international tire company to do so. Russia accounted for approximately 1% of its global car tire production and 2% of its total sales.
This deal comes just a few days after Volkswagen announced that it had sold all the shares of its Russian subsidiaries and its factory in the western city of Kaluga. VW sold its Russian assets to Moscow-based dealership Avilon. While an official figure hasn’t been placed on the deal, reports claim Avilon paid the German car manufacturer approximately €125 million ($135 million).
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