Continental announced it has sold its plant in Kaluga, Russia, to a Russian company S8 Capital. The company has divested the majority of its activities in the country as part of its announced controlled withdrawal from the Russian market – a decision taken by the technology company in response to the war against Ukraine.
Continental and S8 have agreed that employees will be taken over as part of the sales contract. Responsibility for about 1,100 employees involved was always one of the company's key considerations.
Continental produced passenger tyres at the plant in Kaluga along with air conditioning and power steering lines and parts for air suspension systems for the Russian market.
The sale also includes a distributorship in Moscow that belonged to the Tires group sector. The parties to the agreement have agreed not to disclose the purchase price or further details.
The release added that Continental continues to own shares in the joint venture with Russian company Mettem to produce tachographs in Chistopol with around ten employees. The sales process is underway in this location, but regulatory approvals are still pending.
The ContiTech group sector also has sales offices in Moscow with around 30 employees. The company is also aiming for a controlled withdrawal in this case.