ATHENS, Greece—Continental A.G. has changed its approach to the Russian market, focusing on building a distribution network rather than pursuing manufacturing options following the dissolution of its joint venture with Moscow Tyre.
To facilitate its strategy, Conti has set up a new company in Russia, Continental Tyres Russ, which already has signed up a number of retail and wholesale dealers, aiming for the premium and middle segments of the market.
"We have a different strategy. We will import tires to Russia from Romania, Czech Republic and elsewhere," said Jaron Wiedmaier, head of the subsidiary.
Part of the strategy involves waiting for import tariffs to drop as Russia moves toward World Trade Organization membership.
Separately, Conti said it has dissolved the joint venture agreement it had with Moscow Tyre and sold the machinery it transferred to Moscow from the former Gislaved, Sweden, plant to its former partner.