Michelin sold Russian business – Kommersant
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French tire manufacturer Michelin has announced that its Russian business has been bought out by local tire distributor Power International Tires LLC. The company’s expenses from leaving Russia will amount to several tens of million euros, adjusted for exchange rates. This was reported press office Michelin.
The amount of the transaction is not disclosed. Michelin will reflect its expenses due to the exit from Russia in May 2023. The amount will be reflected in operating income. The company expects it to have no impact on its 2023 outlook.
The company added that the agreement was approved by the Russian government. The press service added that the deal will save 250 jobs, most of them at the company’s plant in Davydovo.
Michelin stopped production in Russia in April 2022 due to the entry of Russian troops into Ukraine and the sanctions that followed. In April 2023, the company reported that the shutdown of Russian factories led to a reduction in tire production by 25% in the first quarter of the year. In March 2023, Kommersant wrote that Michelin was going to sell the Russian assets of Power International Bus.
More details – in the publication “Kommersant” “Michelin will leave the tires to the dealer”.
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