Michelin, a well known tire maker based in Davydov near Moscow, has announced the sale of its Russian operations. The move marks a clear shift in how the French company manages its footprint inside Russia, reflecting broader strategic choices in the global tire market. The buyer chosen for the Russian assets is Power International Tires LLC, a firm that has expanded its presence in the region through a focus on tire distribution and related services. Alongside the asset transfer, Camso CIS LLC, a regional specialist in tires and tracks for specialized machinery, is also transferring under the same deal. This combined transfer of assets will allow Power International Tires to operate the production site and maintain the local distribution channels through Camso CIS, ensuring continuity in supply for customers who rely on these products.
The company stated that the option to devolve activities to local government authorities could not be pursued due to significant constraints in creating an autonomous operation within the existing framework. This assessment points to practical barriers in transitioning production and distribution responsibilities without direct management or substantial new investment. The financial terms of the transaction were not disclosed publicly, but the agreement includes protections for about 250 local jobs, underscoring the commitment to preserving employment amid the restructuring. In the accompanying statement, it was noted that the costs associated with withdrawing from the Russian market, which run into tens of millions of euros, were already considered in the company’s 2022 accounting and planning.
Michelin has operated in the Russian market since 1997, maintaining a factory in the Moscow region with a production capacity that reaches up to 2 million tires for passenger cars each year. The sale marks a notable shift in Michelin’s regional strategy, given that Russia represents a modest share of the group’s global output and accounts for a smaller portion of its total passenger car tire production. The move reflects broader considerations facing multinational manufacturers as they navigate currency, regulatory, and market dynamics in the region, while ensuring that customers and employees remain supported through the transition. The change also highlights the ongoing evolution of the Russian tire industry as companies adjust their portfolios and partnerships to respond to changing trade and economic conditions.