Michelin is the latest foreign company that has decided to leave Russia following Moscow’s invasion of Ukraine. The company said on Tuesday that it plans to transfer its activities to local management.
Other companies that have left Russia since the war erupted in February include Ikea, McDonald’s, and Nike. Michelin said that the main reason for its exit is supply chain problems.
“After suspending its manufacturing activities in Russia on March 15, Michelin now confirms that it is technically impossible to resume production, due in particular to supply issues, amid a context of general uncertainty,” the tire company said in a statement.
“The Group is therefore compelled to plan the transfer of all of its Russian operations by the end of 2022,” it said.
A new entity will be formed that will run under an independent structure from Michelin. There are about 1,000 employees in Russia alone, most of them stationed at the plant in Davydovo near Moscow. The plant has an annual capacity of about 2 million tires.
Michelin tires sold in Russia attributed to two percent of the company’s total sales and one percent of its global car tire production.