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Michelin Russian Tire Company

Company

A subsidiary of the French car tire supplier Michelin.
Number of employees
2021 year
1000

In the Russian market and in the CIS countries, Michelin sells passenger, cargo, large-sized, aviation and agricultural tires. The company has been represented in Russia since 1997.

Brands on the market: MICHELIN, BFGoodrich, Tigar, Kormoran, MICHELIN Retreat.

East European Michelin Group Zone

The Michelin company in the East European Zone, which includes 12 countries, operates in two main areas: commercial activity and industrial production at the Davydovo plant.

  • Headcount: Over 1200 employees

  • Production base:

1) Passenger tire factory in Davydovo (Moscow region) 2) Truck Tire Restoration Workshop in Davydovo

  • Commercial agencies (offices): Russia, Ukraine

Distribution

One of the priority tasks of Michelin in the East European Zone is the development of the TYREPLUS tire center retail network. By mid-2011, the number of network members amounted to about 150 passenger and truck tire centers throughout Russia and the CIS countries.

Plant in Davydovo

In 2004, the Michelin plant for the production of passenger tires was opened in the village of Davydovo (Orekhovo-Zuevsky district, Moscow region), which produces summer and winter tires of the MICHELIN and BFGoodrich brands. The plant is located 90 km southeast of Moscow in the village. Davydovo Orekhovo-Zuevsky district of the Moscow region. Michelin was the first among foreign tire manufacturers to open a high-tech tire factory in Russia. In April 2011, the official opening of the MICHELIN truck tire restoration workshop at the Davydovo plant was completed.

History

2023: Sale of the plant in Russia to Power International-Tires

On March 7, 2023, it became known about the sale of the Michelin plant in Davydovo near Moscow. The company entered into a deal with the tire supplier Power International-Tires LLC. Its participants did not disclose the financial and other terms of the agreement.

According to the head of Infoline-Analytics Mikhail Burmistrov, the sale of the plant to the distributor is a "good option," since the buyer is already cooperating with Chinese suppliers and in theory can expand this partnership.

Michelin plant in Davydovo

However, the expert added to Kommersant that it will be difficult to load the former plant of the French manufacturer even by a quarter (its capacity is from 1.5-2 million tires per year), and production can be restarted only in a few months. The latest forecast is explained by the fact that the buyer will have to rebuild supply chains and purchase raw materials. Full-scale production can be established no earlier than a year later, Burmistrov said.

Power International Tires is engaged in the wholesale of automotive components. In October 2022, she received certificates of conformity for Hifly tires (China) for cars and trucks, the newspaper notes.

In the reporting for 2022, which was published in January 2023, Michelin reported that it was working on various options for exiting the Russian market, including selling to a third party. Then the concern noted that the process of searching and negotiating with a local buyer takes longer than planned, and is still ongoing. The company estimated the group's impairment loss in the Russian Federation for balance sheet risks at €139 million and another €13 million - the cost of restructuring Fenner's business in Britain, which mainly served the Russian market.

The capacity of the Michelin plant in the Moscow region is 1.5-2 million tires per year. Most of the products were produced for passenger cars.[1]

2022

Loss of 202 million euros due to departure from Russia

In July 2022, the French car tire manufacturer Michelin reported a loss of 202 million euros due to the departure from Russia.

Sale of Russian business to local top managers

Tire manufacturer Michelin sells Russian business to local top managers, which the company announced on June 28, 2022. The deal became known a few months after Michelin suspended its activities in the Russian Federation.

As explained in the Michelin press service at the end of June 2022, it is technically impossible to resume production, in particular, due to supply problems in conditions of general uncertainty.

Tire manufacturer Michelin sells Russian business to local top managers

It is assumed that the transfer of control over Russian assets will take place before the end of 2022. The Russian division after the transfer of rights will be completely independent of Michelin. The details of the transaction by June 28, 2022 are not specified, as well as under what name the company's products will be produced.

By the beginning of 2022, Michelin Russia employed about 1000 people, including 750 at a plant in Davydovo (Moscow region). Passenger and restored truck tires are produced there. Michelin's sales in the country account for 2% of the group's total sales. The production capacity of the plant in Davydovo ranges from 1.5 million to 2 million tires per year, mainly tires for cars.

In May 2022, the Ministry of Industry and Trade approved a list of goods for parallel imports, it also has Michelin tires and other foreign manufacturers.

Michelin suspended production activities and exports to Russia in early spring 2022 along with Continental, Bridgestone and Yokohama. Continental in April 2022 resumed production at a plant in Kaluga, but noted that it produces tires exclusively for "civilian use."

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In this very complex and uncertain context, the priority for Michelin is to support all its employees affected by this crisis, including Michelin employees in Russia, the company said on March 15, 2022.[2]
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2010-2011

  • 2010: Opening of Michelin Commercial Agency in Ukraine
  • 2010: 10th consecutive victory of the KAMAZ-master team on MICHELIN tires in the 2010 Dakar race
  • 2010: Presentation of the new MICHELIN Pilot Sport 3 sports tire, as well as MICHELIN Pilot Super Sport tires for super sport cars.
  • 2011: Presentation in Russia of a new studded winter tire for all-terrain vehicles MICHELIN Latitude X-Ice North 2.
  • 2011: Opening of MICHELIN truck restoration shop in Davydovo

2007-2009

  • 2007: Creation of the Michelin Davydovo Foundation, designed to financially support socially significant projects in the rural settlement of Davydovo.
  • 2007: The centenary of MICHELIN's presence in Russia
  • 2008: Start of sales of agricultural tires in Russia and the CIS
  • 2009: Presentation in Russia of the new MICHELIN Energy Saver summer tire, as well as the next generation studded MICHELIN X-Ice North 2 tire.
  • 2009: Opening of the 100th TYREPLUS Passenger Tire Center.
  • 2009: Michelin Guides launch in Russia. Release of the first "Green Guide" in Russian.
  • 2009: Formation of the Michelin Group East European Geographic Area.

2001-2005

  • 2001: Purchase of a production site in the rural settlement of Davydovo, 90 km from Moscow
  • 2004: Opening of Michelin Plant in Davydovo
  • 2004: Start of TYREPLUS Passenger Tire Center Retail Network
  • 2005: Michelin plant in Davydovo produces MILLIONTH tire
  • 2005: Opening of rubber mixing shop
  • 2005: As part of the development of the TYREPLUS network, the MICHELIN Truck Pro partnership program for truck bus centers has been launched.

1904-1997

  • 1904: MICHELIN has been present on the Russian market since the beginning of the twentieth century
  • 1907: Car "Lauren-Dietrich" on MICHELIN tires won the first international race Moscow - St. Petersburg
  • 1913: A commercial agency has been opened in Russia; after the Revolution ceased operations
  • 1997: Establishment of a commercial agency (15 employees)

Notes