Tire concern Continental sold its assets in Russia

The concern Continental Global Holding Netherlands B.V, which owns a tire plant and distributor in the Russian Federation, has signed an agreement to sell its stake in the trading company Continental Tires Rus with Industrial Assets C8 JSC, follows from the financial statements of Continental Tires Rus. This company is associated with Armen Sargsyan's S8 Capital, with which a similar deal was previously concluded for the Continental Kaluga tire plant. Both deals to sell Continental's Russian assets are currently awaiting government approval, Kommersant newspaper writes. It is worth noting that Armen Sarkisyan is called a partner of the co-owner of AVILON dealer Alexander Varshavsky, who is now buying Kaluga Volkswagen plant. Analysts believe that an industrial partner can guarantee the volume of deliveries to the tire plant, but the secondary equipment market is still more attractive due to volumes. In their opinion, the company's future product line is unlikely to consist of existing brands, but in theory the company can get Continental technologies.

Recall that Continental Kaluga tire plant was opened in October 2013, investments in the project were 240 million euros. The production capacity of the enterprise is 4 million tires per year with prospects for expansion to 16 million. Currently, the plant employs more than 1,000 people. Continental Kaluga produces winter and summer tires for cars and light trucks of three company brands: Continental, Gislaved and Matador.