In a strategic move, Michelin, has made the decision to sell its activities in Russia to Power International Tires LLC. The sale comes after Michelin suspended its industrial operations in Russia on March 15, 2022, in response to the escalating conflict in Ukraine.
This development marks a significant milestone for Michelin, which has maintained a presence in Russia since 1997.
In a strategic move, Michelin, has made the decision to sell its activities in Russia to Power International Tires LLC. The sale comes after Michelin suspended its industrial operations in Russia on March 15, 2022, in response to the escalating conflict in Ukraine.
This development marks a significant milestone for Michelin, which has maintained a presence in Russia since 1997.
The agreement, which has been approved by the competent local authorities, involves the transfer of two local companies, Michelin Russia Tyre Manufacturing Company (MRTMC) LLC and Camso CIS LLC, to Power International Tires LLC. Power International, a long-standing partner of Michelin, is renowned as one of the leading tyre distributors in Russia and boasts an extensive nationwide presence.
Undertaking several months of careful deliberation and exploration of various options, Michelin's primary objective throughout this process has been to preserve jobs. The company's dedication to this principle has guided its decision-making at every stage of the project. By transferring operations to Power International Tyres, 250 jobs, primarily based in Davydovo, will be safeguarded.
Regrettably, despite the tireless efforts of the Michelin Group, the option to pass the activity on to local management was hindered by significant obstacles that prevented the attainment of operational autonomy. Nevertheless, Michelin has prioritised the well-being of its employees throughout this transition. Recognising that not all employees can seamlessly transition to Power International, the company has facilitated the departure of those individuals who wished to leave under favourable conditions.
The sale of Michelin's activities in Russia to Power International Tyres LLC is anticipated to be finalised in the coming months, subject to the completion of necessary regulatory processes. As the transition unfolds, Michelin will continue to support its employees and maintain its commitment to its global operations, as well as exploring new opportunities for growth and innovation in the ever-evolving tyre industry.
