Michelin Sells Its Russian Subsidiaries To Power International Tyres LLC

The two companies owned by Michelin in Russia – Michelin Russia Tyre Manufacturing Company LLC and Camso CIS LLC – have been sold to Power International Tyres LLC.

• Michelin sells its two owned companies in Russia to Power International Tyres LLC.
• The transfer of ownership will help protect the livelihoods of 250 employees of both companies combined.
• Power International Tyres LLC is one of the biggest tyre distributors in Russia.

Michelin has signed an agreement with Russia’s prime tyre distributor Power International LLC to sell two of its Russia-based companies to the latter. The two companies owned by Michelin in Russia – Michelin Russia Tyre Manufacturing Company LLC and Camso CIS LLC – will now be owned by Power International Tyres LLC, which is one of the largest tyre distributors in the country.

The two companies, a source of livelihood for around 250 people in total, were defunct since March 15, 2022, when Michelin suspended its industrial activities in Russia. The French tyre maker suspended its operations in Russia with an immediate effect following Russia’s conflict with Ukraine, which is still active. Both the companies owned by Michelin are based in Davydovo, Russia.

The transfer of ownership of these two companies from Michelin to Power International Tyres LLC has been approved by the component local authorities. With this change in ownership, the 250 jobs in both these companies have been secured and will be taken care of by the new owner of these companies.

Until now, Michelin was finding it hard to pass the activity on to local management due to certain difficulties, which prevented the whole process. Additionally, Michelin has also allowed a few people to leave the company under good conditions, those who haven’t been taken on board by Power International Tyres LLC.

With setting up its presence back in 1997, Michelin had an illustrious run in Russia as a prime tyre manufacturer and seller. However, like many European countries, Michelin stopped its operations in Russia with an immediate effect, following various sanctions employed by European countries on Russia for its conflict with Ukraine.

According to Michelin, all the costs affected by the cessation of its activities in Russia have been accrued for 2022. In May 2023, the group will mark this agreement between Michelin and Power International Tyres LLC as an expense estimated at a few tens of millions of Euros.

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