AKRON — More than a year after Russia's invasion of Ukraine, tire makers are continuing to divest their Russian assets and remove themselves from the country.
Continental A.G. and Michelin Group both have closed deals recently for their holdings in Russia, while Bridgestone Corp. reported in early June it was "making progress" in its plans to withdraw from Russia.
In late May, Continental sold its passenger tire plant in Kaluga, Russia, to S8 Capital, a Russian investment firm. Hanover, Germany-based Conti said the sale, which also included a tire distributor in Moscow, was approved by relevant authorities. Financial terms were not disclosed.
Conti said S8 agreed to retain the Kaluga plant's 1,100 employees. In addition to tires, the plant produces air conditioning and power steering lines, as well as parts for air-suspension systems for the Russian market.
According to Tire Business data, the plant's annual capacity is rated at 3 million passenger and light truck tires.
The plant opened in 2013. It halted operations briefly in March 2022, but resumed work a month later.
Michelin announced in late May that it found a buyer for its Russian holdings. The French tire maker said it would sell its Russian assets — Michelin Russia Tyre Manufacturing Co. L.L.C., including the tire factory in Davydovo, Russia, and Camso CIS L.L.C. — to former business partner Power International Tires L.L.C., a major Russian tire distributor.
The sale was approved by local authorities. It would give the option to retain 250 jobs, mainly in Davydovo.
The plant, which opened in 2004 and produces mainly passenger tires intended for the Russian market, has an annual production capacity of up to 2 million tires, Michelin said.
Michelin said all costs related to divesting from Russia, an estimated $263 million, have been accrued for fiscal year 2022. The company said it will recognize in May 2023 an expense estimated at a few tens of millions of dollars corresponding to currency translation differences. That expense will have no impact on Michelin's guidance for the fiscal year.