Continental announced "controlled withdrawal" from Russia
A "controlled withdrawal" from the Russian market has been declared by Continental AG in response to the challenges caused by Russia's invasion of Ukraine.
During the annual financial results press conference on March 8, Continental’s CEO Nicolai Setzer said that the invasion "driven up prices for goods, raw materials, and energy". This, according to Setzer, is the reason of the withdrawal.
“This includes selling our business operations in Russia – such as our plant in Kaluga. We are already at an advanced stage of the sale process here. The regulatory approvals required to ensure its successful conclusion have not been made yet”, said Nicolai Setzer.
In 2013, Continental launched its €240 million production facility in Kaluga. Following the outbreak of the war in March of last year, the tire manufacturer shut down its Kaluga plant.
According to European Rubber Journal (ERJ), in April 2022, 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. 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.
Source: ERJ and Continental AG.