Conti announces "controlled withdrawal" from Russia
8 Mar 2023
German group says in ‘advanced stage of sale process’ for tire plant in Kaluga
Hanover, Germany – Continental AG has announced plans for a “controlled withdrawal” from the Russian market in the aftermath of challenges brought on by Russia's war on Ukraine.
The war "drove up prices for goods, raw materials and energy,” said CEO Nicolai Setzer during the annual financial results press conference 8 March.
This, Setzer said, is the reason for the withdrawal, which involves the selling of Continental’s business operations in Russia, including the group’s tire production plant in Kaluga.
“We are already at an advanced stage of the sale process here,” said Setzer, though noting that regulatory approvals required to ensure completion have yet to be received.
Continental opened the €240-million production plant in Kaluga in 2013. In March last year, the tire maker halted its operations in Kaluga, following the breakout of the war.
In April, the German group said it was “temporarily resuming” production of passenger tires for the local market to “fulfil our duty of care to our employees in Russia” and protect them from prosecution.
According to ERJ’s Global Tire Report 2021, Continental has capacity to manufacture 3 million units of passenger car and light truck tires at the Kaluga plant. The facility employs 1,000 people.