German technology company Continental has sold its plant in Kaluga, Russia, to Russian company S8 Capital. With this step, it says it has divested majority of its activities in Russia as part of the earlier announced controlled withdrawal from the Russian market – a decision taken by the technology company in response to the war against Ukraine.
The transaction has been approved by the relevant authorities.
The Kaluga plant currently produces passenger vehicle tyres. Earlier, air conditioning and power steering lines as well as parts for air suspension systems for the Russian market were also manufactured there. The sale also includes a distributorship in Moscow that belonged to the Tires group sector.
S8 Capital has also taken responsibility for the around 1,100 employees involved as part of Continental’s key considerations. With this, the German company now has shares in the joint venture with Russian company Mettem for the production of tachographs in Chistopol with around 10 employees. That too is in the sales process at an advanced stage and awaiting regulatory approvals.
The ContiTech group sector also has sales offices in Moscow with around 30 employees. Here, too, Continental continues to aim for a controlled withdrawal.
