Michelin to sell Russian factory to local tyre wholesaler

Despite initially planning to sell its Davydovo, Russia tyre production plant to the factory’s local management, Michelin is now in talks with Moscow-based Power International Shiny LLC. Michelin reportedly hopes to reach an agreement with the new buyers “soon”.

“We are now discussing a purchase by a local player…We dropped the idea of a purchase by local management because this was too complex,” Reuters quoted a Michelin spokesperson as saying. That report didn’t name a buyer, but local Russian newspaper Kommersant did name Moscow-based Power International Shiny LLC, adding that the deal is “close to completion”.

Power International Shiny describes itself as “a team of professionals…successfully working in its field for over 20 years.” The business focuses on wholesaling a wide range of tyre and wheel brands including: Michelin, Nokian, Continental, Yokohama, Pirelli, Goodyear, Bridgestone, Hankook, Triangle, Toyo, Viatti, Nexen, BFGoodrich, Nitto, Tigar, Matador, Marshall, Maxxis, Gislaved, Replay, Borbet, Skad, Yamato, Advanti and Konig. In addition, Kommersant reports that the business also imports the Shandong Hengfeng Rubber & Plastic Co.-produced HiFly tyre brand.

Power International Shiny also sells tyres to end consumers through its “4 Points” retail division (www.4tochki.ru).

Michelin was the first Western tyre maker to enter Russia in 2004, but suspended its operations there in March 2022.

The Russian tyre market has totalled between 30 and 40 million units in recent years, with – until recently – Nokian Tyres the largest foreign player.