Latest News

Supply hurdles bring Michelin’s Russian operations to a halt

© Reuters. FILE PHOTO: The logo of French tyre maker Michelin is seen on a Formula E racing car during a news conference to present the partnership between Enel Group and FIA Formula E Championship at the MAXXI National Museum in Rome, Italy May 17, 2016. REUTERS

(Reuters) -French tyre maker Michelin (PA:MICP) is suspending its industrial activity in Russia and exports to the country due to supply difficulties following Moscow’s invasion of Ukraine.

In 2004, Michelin became the first international tyre company to open its own production in Russia, with sales in the country currently representing 2% of the group’s total and 1% of its global passenger car tyre production, Michelin said in a statement.

The group’s only plant in Russia, Davydovo, repairs truck tyres and produces up to 2 million new car tyres per year, mainly for the Russian market and some Northern European countries.

“The plant was already working at a very low level since several days. There is a lot of supply difficulties – which means we have disruption of financial flows, and there’s a problem of currency instability,” the company’s spokesperson told Reuters.

Michelin was looking for alternative supply sources in Asia and the Middle East, the spokesperson said, adding the group would continue to pay the wages of the more than 1,000 people it employs in Russia, including 750 at the Davydovo plant.

It had stopped sales of plane tyres and mining tyres following U.S. sanctions, before halting exports completely on Tuesday.

Supply hurdles bring Michelin’s Russian operations to a halt

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *