Tire maker Michelin suspends Russian operations

Michelin’s decision to stop exporting to Russia includes freezing a supply contract with flag carrier Aeroflot for airplane tires, dealing a further blow to the country’s aviation industry. The French manufacturer on Tuesday said it would also halt operations at a factory near Moscow, accounting for about 1% of its global passenger car tire production. Michelin earns about 2% of sales in Russia and employs about 1,000 people in the country, three quarters of them at a plant at Davydovo, according to the statement. Cie. Generale des Etablissements Michelin follows a host of firms -- from food and credit card companies to automakers and fashion retailers -- to pull out of Russia following President Vladimir Putin’s invasion of Ukraine. Cigarette maker Imperial Brands Plc on Tuesday said it has started negotiations on transferring its Russian assets and operations. Read more: Sony, Uniqlo Join Global Brands Disappearing From Russia Michelin’s exports to Russia included airplane tires as part of a contract with Aeroflot, according to a spokesman. The trade was halted under European Union sanctions barring the supply of aircraft, parts or services to airlines linked to Russia. The EU has also closed its airspace to Russian planes. The French company has been increasingly moving into the specialized tire business for jets as well as vehicles like tractors. Michelin’s plant at Davydovo, where production will come to a halt, has a production capacity of 1.5m to 2 tires a year and employs about 750 people making passenger car tires and retreaded truck tires. The move by Michelin is a further sign that the war in Ukraine has intensified already stressed supply chains for automakers. Ukraine is a key source of wire harnesses that power car electrical systems, while Russia is a source of supplies needed to make tires.<br/>