2023-05-28 12:30:00
On Friday, announcing the sale of its activities to a local party, the Michelin group announced that it was leaving Russia, where it made 2% of its sales there.
On Friday May 26, 2023, the Michelin group communicated its total withdrawal from Russia. This departure takes shape through the sale of the tire manufacturer’s activities to a local party. By press release partially reported by Ouest-France, Michelin has therefore announced “the signing of 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”.
Michelin Group leaves Russia more than a year following suspending operations there
The announcement specifies that the French group had been shut down on Russian soil for more than a year: “After suspending its industrial activities in Russia on March 15, 2022, following the outbreak of the conflict in Ukraine, Michelin announces today (Editor’s note: Friday]the signing of an agreement with Power International Tires LLC”. There was already talk of turning the page definitively in June 2022, we are told.
250 million assets in question, a transaction of an unknown amount
It is not known for how many euros Michelin sold its activities, unlike the assets concerned here: 250 million euros, part of which will be absorbed by the remaining factories of the group. About a thousand people were employed by the manufacturer, including 750 workers in the Davydovo factory where 1.5 to 2 million tires were produced each year so far.
2% of total sales
Michelin’s sales in Russia accounted for 2% of the group’s total sales, which in 2021 amounted to 23.795 billion euros. 1% of the production of tires for passenger cars was also located on Russian soil.
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