CLERMONT-FERRAND, France — Michelin is the latest company to announce plans to exit Russia following the invasion of Ukraine.
In a news release Tuesday, the French tiremaker, which halted Russian manufacturing and exports to the country in mid-March, said it’s “technically impossible to resume production, due in particular to supply issues, amid a context of general uncertainty.”
“The group is therefore compelled to plan the transfer of all of its Russian operations by the end of 2022 and is considering the possibility of transferring control of its administrative, sales and industrial operations to the current local management,” the release said.
Michelin, which has about 1,000 Russian employees, added that the “new entity would operate through an independent structure,” according to the release.
The company said its Russian operations are worth about $265 million, Bloomberg and Reuters reported. About 2% of Michelin’s overall sales and 1% of its worldwide tire production occur in the country, the release said.