2023-05-26 13:30:38
Michelin Group announced on Friday that it has sold its Russian operations to Russian group Power International Tires LLC, according to AFP.
Michelin tirePhoto: Michelins
In a press release, Michelin explained that it has signed “an agreement with Power International Tires LLC to acquire its two local companies, Michelin Russia Tire Manufacturing Company (MRTMC) LLC and Camso CIS LLC.”
Power International, a well-known partner of Michelin, is one of the leading tire distributors in Russia and is present throughout the country, according to the group.
The takeover “will protect 250 jobs, mainly in Davidovo”, he said.
Michelin had regarding 1,000 employees in Russia, including 750 in Davidovo, near Moscow.
“Aware that not all employees might be taken over by Power International, Michelin allowed those who wished to leave the company to do so on favorable terms,” he added.
“The option to transfer activities to local management, despite the efforts of the group’s teams, was not successful due to the major difficulties of making these activities autonomous,” added Michelin.
Michelin has been present in Russia since 1997, but suspended its activities following the war in Ukraine.
The Russian sales freeze accounted for a quarter of the decline in tire sales (in tonnes) in the first quarter of 2023 compared to the first quarter of 2022, which was also caused by reduced inventories.
However, higher selling prices offset lower volumes.
Headquartered in Clermont-Ferrand, Michelin is present in 175 countries and has 132,200 employees.
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