Continental “at an advanced stage of the sale” of Russia tyre factory

In June 2022, Nokian Tyres was the first tyre manufacturer to use the terms “controlled exit” to describe its withdrawal from operations in Russia. Now, Continental has joined them, with Conti CEO Nikolai Setzer using very similar language as part of the German tyre and automotive supplier’s full-year 2022 financial results presentation.

Linking Continental’s withdrawal from its Russian operations with the company’s sustainability agenda, Setzer commented: “…we are acting sustainably – even when times are tough. And 2022 was definitely one of those years…”, adding: “…the war in Ukraine drove up prices for goods, raw materials and energy. This is also the reason why we are working toward a controlled withdrawal from the Russian market.”

Continental thereby officially stated that it has joined fellow international tyremakers Michelin, Bridgestone and Nokian in committing to a Russian exit or – Rexit.

For Continental, this specifically includes “selling our business operations in Russia – such as our plant in Kaluga” something that the tyremaker is some way towards, with Setzer noting: “We are already at an advanced stage of the sale process here”. However, “the regulatory approvals required to ensure its successful conclusion have not been made yet.”

Continental opened its Kaluga tyre production base in 2013, investing 240 million euros at the time. Recent figures suggest that more than 50 per cent of tyre production output was exported. Last March, Continental paused its operations in Kaluga before restarting – at least temporarily – in April 2022.