In March last year, French tiremaker Michelin announced that it would halt operations in Russia after Moscow’s invasion of Ukraine. The manufacturer said it would hand over its factory to a new local company by the end of the year.
In a recent report by Kommersant, Michelin has found a buyer. Similar sources say the same thing. The local newspaper reported that the facility is being sold to a Russian tire distributor known as Power International-shiny.
It has the capacity to produce up to 2 million Michelin tires every year. The deal is now in its final phases awaiting complete handover. Michelin announced plans to exit the country in June due to procurement challenges.
The Russian facility employs about 1,000 people and represents 1% of the company’s global capacity. The majority of the employees are based at the Davydovo plant located about 62 miles from Moscow.
Before embarking on the plan to sell, Michelin first suspended operations in Russia including exports into the country.