HANOVER, Germany—Continental A.G. has sold its passenger tire plant in Kaluga, Russia, to Russian company S8 Capital, divesting the majority of its activities in the country in response to the war in Ukraine.
The transaction has been approved by the relevant authorities, according to Conti, which declined to disclose the purchase price.
In addition to tires, the Kaluga plant produced air conditioning and power steering lines, as well as parts for air-suspension systems for the Russian market.
The sale includes a tire distributor in Moscow.
Continental and S8 have agreed that the 1,100 employees will be retained as part of the sales contract.
Continental opened the factory in Kaluga in 2013. In March 2022, the plant halted operations following the breakout of the war, but temporarily resumed production of passenger tires for the local market a month later.
According to Rubber News' 2022 Global Tire Report, the Kaluga plant's capacity is rated at 3 million passenger and light truck tires.