“Resumption of production is technically impossible, especially due to supply problems in the context of general uncertainty,” the company said.
The French company said the business in Russia had a balance sheet of € 250 million, but the transfer of the business to local management would not affect the financial guidelines.
The new company will be independent of the French group, Michelin said in a statement.
Michelin said that the Russian market accounted for 2% of the company’s turnover and that it produced 1% of all the company’s tires. In Russia, Michelin has about 1,000 employees, most of whom work at the Davidov plant on the outskirts of Moscow.
Hundreds of Western companies, such as the IKEA chain of furniture stores, McDonald’s fast food chain and Nike sporting goods company, have left Russia after Russia launched a new invasion of Ukraine on February 24 and imposed heavy sanctions on the West.
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