Michelin suspended its industrial activity in Russia on March 15, 2022, following the invasion of Ukraine, but only now has it announced that negotiations for the sale have been completedfor an unannounced fee, from Michelin Russia Tire Manufacturing Company and Camso CIS to Power International Tires, his former tire distributor in the region.
The signed agreement will save the jobs of 250 employees of the Davydovo plant, which in the best of cases employed 750 people and produced 2 million tires a year, destined to supply the Russian market and some northern European countries. Michelin confirms that it was not possible to ensure that the new company could continue to be autonomous, which caused Power International Tires not to retain the entire workforce, the French manufacturer negotiating the layoffs with those who intended to leave the now Russian company.
Michelin entered the Russian market in 1997, having opened its local production in 2004, with the start-up of the country’s first tire factory. still so, the Russian operation accounted for just 1% of Michelin’s total tire production and around 2% of its total sales volume.
This announcement took place just days after the Volkswagen Group also revealed the sale of all shares of its Russian subsidiary, including the Kaluga plant. The buyer was Avilon, a Moscow-based company responsible for the local dealer network, which allegedly paid Volkswagen around 125 million euros.
Source: Observadora
