Paris, May 26, (dpa-AFX/GNA) – French tire maker Michelin said on Friday that it has signed an agreement to sell its Russian operations to Power International Tires, a distributor in Russia.
The company’s deal with the Russian tire distributor Power International involves the purchase of Michelin’s two local companies, Michelin Russia Tyre Manufacturing and Camso CIS.
Following the start of the conflict in Ukraine, Michelin had suspended its industrial activities in Russia on March 15, 2022. The company has been present in the country since 1997.
Michelin said the latest deal, approved by the competent local authorities, will save 250 jobs, mainly based in Davydovo.
The option to pass the activity on to local management was not possible due to major difficulties preventing these activities from being rendered autonomous, it said.
All costs relating to the cessation of activities in Russia have been accrued for in 2022.
Michelin will, however, recognize an expense for the month of May estimated at a few tens of millions of euros corresponding to currency translation differences.
The expense will be recognized in operating income, and will have no effect on the group’s 2023 guidance, it said.
GNA