French tire maker Michelin has sold its assets in Russia, including a plant in Davydovo near Moscow, to Russian distributor Power International Tires.
Source. This was announced on Friday, May 26, in a press release from the company, RFI reports.
Founded in Clermont-Ferrand, the Michelin tire company was represented in tsarist Russia in the early 20th century, left Russia in 1917 and returned in 1997, the French economic publication Les Echos notes. After the beginning of Russia's invasion of Ukraine, Michelin left Russia again, like many other Western companies.
On March 15, 2022, Michelin stopped all production in Russia, pledging to support hundreds of its Russian employees. Since then, its tire plant in Davydovo near Moscow, which had been operating since 2004, has been idle. Prior to that, the Davydov plant accounted for 1% of the group's total tire production. In terms of Michelin's sales, Russia accounted for 2%.
Michelin announced plans to sell its Russian assets in June 2022. At the time, Michelin's communiqué said that the group was "forced" to plan the sale by the end of 2022 and was considering the option of transferring the business to its local management. However, this scenario could not be realized "due to significant difficulties that do not allow such activities to be autonomous," Michelin explained.
On May 26, it was officially announced that Michelin had sold its tire plant in Davydovo near Moscow and the Camso brand, which specializes in off-road tires and tracks for special equipment, to a Russian company. The buyer is Power International Tires, a company that purchases and sells tires of various brands.
The amount of the deal was not disclosed. From now on, the Russian authorities require a contribution to the budget when foreigners sell assets. According to the new law, such businesses must be sold at half price or less.
Earlier, Michelin reported that it has about a thousand employees in Russia, including 750 at the plant in Davidov.
In March of this year, it was reported that Power International Tires began importing tires of the Chinese brand Hifly to Russia, which could help restart the plant in Davidov. According to analysts, the full restart of production will take at least a year.