Continental sells Russian tire production plant

Hanover, Germany – Continental has sold its tires and automotive parts manufacturing operation in Kaluga, Russia to S8 Capital, the German-based group announced 22 May.

With the sale, Continental has “divested the majority of its activities in Russia” under its planned withdrawal from the country in response to the Kremlin’s war against Ukraine.

The transaction with the Russian company “has been approved by the relevant authorities,” though financial terms of the agreement are not being disclosed.

Continental produced passenger car tires at Kaluga, while air conditioning, power-steering and air suspension parts and/or systems for the Russian market were also manufactured there.

S8 has agreed to take on the around 1,100 people employed at the Kaluga operation as part of the sale, which also includes a tires distributorship in Moscow.

Following the sale, Continental still owns shares in a joint venture with Russian company Mettem for the production of tachographs in Chistopol, Russia with around 10 employees.

“Here, the sales process is at an advanced stage, but regulatory approvals are still pending,” the Hanover-based group stated.

Continental said it is also working towards a controlled withdrawal from a 30-employee sales operation in Moscow, run by ContiTech.

With the sale of the Kaluga plant, Continental become the second major player, with Nokian, to fully exit from tire manufacture in Russia. 

Bridgestone and Michelin are still seeking buyers for their Russian tire-making operations, while Pirelli and Yokohama Rubber Co. are continuing their production operations in the country.

Major tire manufacturers’ plants in Russia