The German tire manufacturer Continental intends to leave the Russian market due to the military conflict in Ukraine. On this subject informed Nikolai Zetzer, CEO of the company, at the annual press conference in Hannover.
According to Zetzer, 2022 has been “particularly difficult” for the company because “the war against Ukraine has driven up the prices of raw materials, semi-finished products, energy and logistics”.
“This is one of the reasons why we will continue to fight for a controlled exit from the Russian market,” the CEO said.
At the same time, Zetzer said, “Despite the challenges, Continental delivered “strong operating results” and met its sales and earnings guidance. At the same time, at the end of the year, the company suffered losses in the amount of 850 million euros: for example, in Russia, as a result of sanctions, assets worth ‘about 87 million euros have been written down,’ he added.
Early March 2022 Continental announcement on the suspension of activities in Russia. It was about the closure of the tire production plant in Kaluga. However, in mid-April informed on the temporary resumption of the operation of the plant in order to “save” the employees who are in Russia from criminal prosecution. What kind of possible criminal cases were discussed, Continental did not say. They also noted that the plant will meet “local demand”.
At the same time, from August 1, 2022, the Kaluga plant has resumed production in a volume that allows it to “meet the needs of the automotive market”, informed Governor of the Kaluga region Vladislav Shapsh. He noted that the company “was able to rebuild supply chains” and “find new suppliers”.
Foreign tire manufacturers began to exit the Russian market after the start of the military conflict between Russia and Ukraine. In particular, the Japanese company Bridgestone and the French company Michelin announced their intention to leave Russia.
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