Continental: Russian tyre raw material supply will ‘gradually deteriorate’

In light of the ongoing war in Ukraine and the resultant sanctions against Russia, Tyres & Accessories asked the well-known automotive supplier and premium tyre manufacturer for its perspective on the situation. In response, an official statement from the Continental Tire Group Sector explained: “We are following the war against the Ukraine with great concern. Our thoughts are with the people affected and we hope that the combat operations end as quickly as possible.”

As far as tyre manufacturing is concerned, Continental expects ”the supply situation for raw materials required for tyre production to gradually deteriorate in light of the sanctions imposed and the further worsening of logistics bottlenecks.” Therefore, the company has “activated corresponding contingency plans that include safety stocks and alternative suppliers.”

Of course, it is not possible to predict what further economic effects the current crisis will have for Continental and its customers, but Continental’s statement did confirm that the company is continuing to meet its supply obligations due to flexibility offer by its global network: “At present we are still able to meet our supply obligations in full. Our global production network gives us the necessary flexibility to do so.”

In the meantime, the company is keeping fully abrest of the evolving circumstances: “We are monitoring the current situation very closely and are constantly reviewing all options available to us. This applies in particular to our supply chains for raw materials, the transport of supplies and goods, and the effects of the sanctions imposed as a result of the armed conflicts.”

Continental employs approximately 1,300 people in Russia.