Continental mentioned the transfer was geared toward assembly native demand and in keeping with sanctions imposed on Moscow for its invasion of Ukraine, which Russia calls a “special military operation”.
“Our employees and managers in Russia face severe criminal consequences should we refrain from serving local demand,” mentioned Continental, including that its merchandise had been made for civilian use as a matter of precept.
Continental, which on March 8 mentioned that manufacturing on the plant had been suspended, didn’t elaborate on the potential costs employees would possibly face.
“In order to protect our employees in Russia from prosecution, we are temporarily resuming the production of passenger tyres for the local market at our tyre plant in Kaluga if necessary,” it mentioned.
Continental mentioned resumption in manufacturing was not a profit-driven resolution.
Finland’s Nokian Tyres warned this month that EU sanctions will make it onerous to promote tyres in Russia, though in March it mentioned its resolution to carry onto its factories gave it management over the place the tyres are offered.
Around half of the uncooked materials used to provide its tyres in Russia got here from outdoors the nation, it mentioned.
Italy’s Pirelli has halted funding in Russia and curtailed its crops there. Pirelli makes round 10% of its world tyre output in two Russian factories.
President Vladimir Putin mentioned in March that Russia might seize property of corporations that abandon their operations there.
Russian prosecutors have additionally warned some Western corporations that their staff might face arrest in the event that they shut manufacturing of important items, an individual accustomed to the matter mentioned.
Source: www.financialexpress.com”