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.

Michelin tire. (Illustrative image) Getty Images - kenneth-cheung

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In a statement, the French tire manufacturing company Michelin said it had signed "an agreement with Power International Tires LLC, for the acquisition of its two local companies, Michelin Russia Tyre 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 country. This takeover "will save 250 jobs, mainly located in Davydovo," he said. Michelin had about 1,000 employees in Russia, including 750 in Davydovo, near Moscow.

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Aware of the fact that not all staff could be taken over by Power International, Michelin allowed those who wished to leave the company in good conditions. ", says the equipment manufacturer. "The option of transferring the activity to local management, despite all the efforts of the group's teams, could not succeed due to significant 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 following the war in Ukraine. The halt in sales in Russia accounted for a quarter of the decline in tyres sold in the first quarter of 2023 compared to the first quarter of 2022, also caused by the reduction in inventories.

The French tyre giant achieved a 2023.7% increase in sales in the first quarter of 4 to €6.96 billion, as higher selling prices more than offset lower volumes sold.

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

>> Read also: Michelin factories invest in decarbonization

(

With AFP)

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