Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Mid-Year Report
  • News
    • Aligning with ADAS
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Russia war in Ukraine
March 09, 2022 09:57 AM

Conti suspends tire production at Russian plant

European Rubber Journal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    continental-flags_i.jpg

    HANOVER, Germany — Continental A.G. has suspended production of tires temporarily at its factory in Kaluga, Russia, and halted imports and exports of products to and from Russia company wide, as Russia's war against Ukraine continues.

    In a statement provided to European Rubber Journal, Continental said it is able to meet supply obligations "at the moment."

    "However, we expect the supply situation for raw materials required for tire production in Europe to gradually deteriorate in light of the sanctions imposed and the further worsening of logistics bottlenecks," the firm stated.

    Latest news
    Michelin suspending production at some European plants
    Tire replacement market tops pre-pandemic levels

    Continental said it had activated corresponding contingency plans that include safety stocks and alternative suppliers.

    In a video posted on Conti's website, Chairman Nikolai Setzer said the company is taking efforts to support its staff at the Kaluga plant affected by the suspension.

    In the video, Setzer stressed that Conti as a company supports diplomatic efforts and "all combat operations must end as quickly as possible."

    The Hanover-based company stressed that at this moment, it is not possible to predict what further economic effects the current crisis will have for the company or its customers.

    "We are monitoring the current situation very closely and are constantly reviewing all options available to us," it added.

    Related Article
    Nokian shifting some production out of Russia

    This applies in particular to "supply chains for raw materials, the transport of supplies and goods, and the effects of the sanctions imposed as a result of the armed conflicts."

    According to Tire Business' Global Tire Report, Continental's nine-year-old Kaluga plant has a rated annual capacity of 3 million passenger and light truck tires, with 1,000 employees.

    Subscribers may download the Global Tire Report, published Aug. 30, 2021, in our archive.

    Separately, Conti cautions in its 2021 financial statements — published March 9 — of "lasting consequences' for production, supply chains and demand, if the geopolitical situation, remains tense or even worsens."

    The group said depending on the severity of the disruption, 2022 sales and earnings could be impacted in all group sectors.

    Tire Business

    Tire production facilities in Russia and Ukraine as of August 2021.

    Not including these risks, Continental said it expects global production of passenger cars and light commercial vehicles will increase by 6% to 9% in 2022.

    In 2021, this figure increased year-on-year by 3% to 77 million vehicles as a result of the semiconductor shortage.

    The company also said that it anticipated higher procurement and logistics costs of around $2.5 billion.

    The German group expects 2022 consolidated sales to come in at $41 billion to $43.5 billion with an adjusted pre-tax operating (EBIT) margin of 5.5% to 6.5%.

    Continental said it expects business to improve gradually following "a subdued start to the year."

    In 2021, Conti reported a 37.7% increase in adjusted EBIT to $2.25 billion, on 6% higher sales of $40 billion. The firm did not release a breakdown of segment performance for 2021.

    In 2022, Continental expects its Tires business unit to report sales of between around $14.5 billion and $15 billion with an adjusted EBIT margin of 13.5% to 14.5%.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Goodyear marks milestone with Cooper Tire integration
    2
    Brison leaves Hankook for TireHub
    3
    Updated: Tire makers react to war in Ukraine
    4
    ITDG CEO Dave Marks announces retirement
    5
    Using torque sticks to speed service times
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Mid-Year Report
    • News
      • Aligning with ADAS
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION