French tyre group Michelin to halt business in Russia

·1 min read
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French tyre group Michelin said Tuesday it plans to transfer its activities in Russia to local management, the latest foreign firm to exit the country following Moscow's invasion of Ukraine.

Hundreds of Western companies ranging from furniture store Ikea to fast-food chain McDonald's and sports retailer Nike have left Russia since the war in Ukraine erupted in late February and sanctions were imposed on Moscow.

Michelin cited supply chain problems as the main reason behind its decision to give up business in Russia.

"After suspending its manufacturing activities in Russia on 15 March, Michelin now confirms that it is technically impossible to resume production, due in particular to supply issues, amid a context of general uncertainty," the tyre 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."

A thousand employees

The new entity would operate through an independent structure from Michelin, the company added.

Michelin Russia employs around 1,000 people, most at the Davydovo plant near Moscow, where it has an annual production capacity of up to two million tyres.

Micheline sales in Russia represented two percent of the group's total sales and 1 percent of its worldwide car tyre production.

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