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The Michelin Group announces that it has sold its activities in Russia

The Michelin group announced on Friday May 26 that it had sold its activities in Russia to the Russian group Power International Tires LLC.

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In a press release, the French tire manufacturing company Michelin explains that it has signed ” an agreement with Power International Tires LLC, for the acquisition of its two local companies, Michelin Russia Tire Manufacturing Company (MRTMC) LLC and Camso CIS LLC “.

A well-known partner of Michelin, Power International is one of the main tire distributors in Russia and is present throughout the territory, specifies the group. This redemption will save 250 jobs, mainly located in Davydovo “, he assures. Michelin had approximately 1,000 employees in Russia, including 750 in Davydovo, near Moscow.

Aware of the fact that all the staff could not be taken over by Power International, Michelin allowed those who wished to leave the company under good conditions. “, specifies the equipment manufacturer. ” The option of transferring the activity to local management, despite all the efforts of the group’s teams, was not successful due to major difficulties that did not allow these activities to be made autonomous. “, adds the Michelin group.

Present in Russia since 1997

Present since 1997 in Russia, the manufacturer had suspended its activities there following the war in Ukraine. The halt in sales in Russia had accounted for a quarter of the drop in tires sold in the first quarter of 2023 compared to the first quarter of 2022, also caused by the reduction in inventories.

The French tire giant achieved in the first quarter of 2023 a turnover up by 7.4%, to 6.96 billion euros, the increase in selling prices having more than compensated for the drop in volumes sold.

Based in Clermont-Ferrand, Michelin is present in 175 countries and employs 132,200 people.

>> To read also: Michelin factories invest in decarbonization

(With AFP)

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