Michelin Sells All Activities in Russia

Michelin Sells All Activities in Russia

Probably due to the recent Ukraine conflict.

French tyre maker Michelin recently announced it was selling its Russia Tyre Manufacturing Company (MRTMC) and Camso CIS, both of which are based in Russia, to Power International Tires, a Russian tyre distributor.

The agreement, approved by Russian authorities, will retain 250 or so jobs that are at stake. These workers are mainly based at Michelin’s sole Russian plant in Davydovo.

The Davydovo plant, located in the vicinity of Moscow, currently employs 750 people. At peak capacity, it produces up to 2 million tyres per year. These tyres are mainly destined for passenger cars in Russia and some Northern European markets.

As with all big-name transfers, Michelin stated it was impossible for every employee to be transferred to Power International Tires. Hence, the French firm added that those who wished to leave the company would be allowed to do so “under good conditions”.

Michelin and Russia

This withdrawal was actually speculated since last year when Michelin announced that it was suspending industrial activity in Russia and exports to the country due to supply chain difficulties after Moscow’s declared invasion of Ukraine.

Michelin has had a presence in Russia since 1997, becoming the first international tyre company to open its own production plant in the region in 2004. Michelin previously stated that sales in Russia represent 2% of the group’s total and 1% of its overall global car tyre production, and the termination of its activities in Russia led to a 25% decline in volumes in the first quarter of this year.

The tyre industry as a whole has been hit hard by Western sanctions on Russia, which have cut off critical raw materials supplies and revoked access to factories that supplied customers outside Russia.

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Sean Loo

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