Michelin Tyres sells Russian factory to local company

Michelin Tyres sells Russian factory to local company

After suspending its manufacturing activities in Russia on March 15 2022, Michelin now plans to sell its Davydovo plant near Moscow to Moscow-based Power International Shiny LLC.

The Davydovo plant in Russia was opened in 2004 located about 100 kilometres from Moscow and produces 1.5-2 million tyres a year. Michelin Russia employs around 1,000 people, most at the Davydovo plant

The company announced the suspension of its industrial activity in Russia in March 2022 when Russia invaded Ukraine.

“After suspending its manufacturing activities in Russia on 15 March 2022, Michelin now confirms that it is technically impossible to resume production, due in particular to supply issues, amid a context of general uncertainty,” the tyre company said in a statement.

Hundreds of Western companies ranging from furniture store IKEA to fast-food chain McDonald’s, sports retailer Nike and tyre manufacturing companies Pirelli and Nokian have left Russia since the war erupted in late February and sanctions were imposed on Moscow.

The global tyre industry has been hit hard by Western sanctions on Russia, which have cut off supplies of critical raw materials and shuttered factories that supply customers outside Russia.

Michelin sales in Russia represented 2% of the group’s total sales and 1% of its worldwide car tyre production.

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