Michelin to transfer Russian operation to local team

Clermont-Ferrand, France – Michelin is divesting its Russian tire production operations, having suspended activities in the country since mid-March in the aftermath of the Russia-Ukraine war.

“Michelin now confirms that it is technically impossible to resume production, due in particular to supply issues, amid a context of general uncertainty,” said a 28 June statement by the French group.

The group said it was “compelled to” plan the transfer of all of its Russian operations by the end of 2022.

As part of the move, Michelin said it is considering the possibility of transferring control of its administrative, sales and industrial operations to the current local management.

In doing so, the group said it is preparing “the most favourable framework” possible for its employees.

The new entity would operate through an independent structure from Michelin.

Michelin Russia employs 1,000 people, including 750 at the group's Davydovo plant, about 100 kilometres outside Moscow.

The site has an annual production capacity of 1.5 to 2 million tires, mainly for passenger cars.

According to Michelin, sales in Russia represent 2% of the group’s total revenue, which stood at €23.8 billion last year. The site manufactures 1% of Michelin's global car tire production.

In financial terms, the French group’s balance sheet exposure to the project’s perimeter is currently estimated at around €250 million.