DAVYDOVO, Russia—Michelin's Russian operations have sat idle for more than a year as the French tire maker worked out its exit strategy.
That plan is much clearer now.
On May 26, Michelin announced that it had reached a deal to divest its Russian businesses—Michelin Russia Tyre Manufacturing Co. L.L.C. and Camso CIS L.L.C.—to Power International Tires L.L.C., one of the main tire distributors in the country.
Details of the agreement were not disclosed.
Michelin's Davydovo facility—located about 65 miles from Moscow—opened in 2004 and manufactured both passenger car and light truck tires, according to the latest Global Tire Report. The facility has an annual capacity between 1.5 million and 2 million tires—mainly for passenger cars, Michelin said last year.
Overall, the plant accounted for about 1 percent of the company's global tire production.
Under Michelin, the facility employed around 750.