Michelin will transfer activities in Russia to local management

The Michelin Group has made the decision to outsource operations in Russia to local management and is working to find the best solution for its employees. Following the suspension of operations in Russia from March 15, 2022, the Michelin Group stated that it was not technically feasible to resume operations, in particular due to logistical challenges in the current volatile and uncertain context.

According to Michelin's press service, the company is forced to plan the transfer of all its activities in Russia until the end of 2022 and is exploring the possibility of transferring production and commercial assets to the current local management. The new organization will not be associated with the Michelin structure and brand. Michelin has been presented in the Eastern European region since 1997. In 2004, a Michelin plant for the production of passenger tires was opened in the village of Davydovo (Orekhovo-Zuevsky district, Moscow region).

Michelin Russia employs about 1,000 people, among which 750 are employees of the production site in Davydovo. The production capacity of the plant is 1.5-2 million tires for passenger cars. Michelin Russia sales account for 2% of the Group's total sales and 1% of the Group's total passenger car tire production. Financially, the Michelin Group's current balance sheet risk for this project is approximately €250 million. The implementation of this project will lead to the deconsolidation of the Group's assets, however, will not affect the financial targets for the current year.