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Michelin announces the sale of its activities in Russia until the end of this year - Observer

Michelin announces the sale of its activities in Russia until the end of this year – Observer

Michelin announced on Tuesday the sale of its activities “until the end of 2022” in Russia, which represent 2% of the group’s sales, explaining that this operation It will not affect your financial goals.

“After suspending its industrial activities in Russia on March 15, Michelin has today noticed a technical impossibility to resume it,” the French tire manufacturer announced in a press release.

Michelin employs about 1,000 people in Russia, including 750 at the Davidovo factory near Moscow, which opened in 2004, which It produces between 1.5 and 2 million frames per yearEspecially for cars in the local market.

The group plans to transfer control of the industrial and tertiary operations to the local administration, which “will operate through a structure independent of Michelin”.

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Michelin noted “supply difficulties in a constant context of general uncertainty”, with the war in Ukraine continuing and international sanctions against Russia continuing to rise.

During the general meeting of the French group, on May 13, the Chief Executive Officer (CEO), Florent Ménigoux, announced the need to Find a replacement tire component from Russia.

Michelin generates 2% of its sales in Russia, 23.7 billion euros in 2021, and 1% of its global production of light vehicle tires.

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