FRANKFURT — Continental has quickly resumed tire manufacturing for passenger automobiles at its Russian plant in Kaluga, it mentioned on Tuesday, to guard native employees who may in any other case face legal fees.
Continental mentioned the transfer was aimed toward assembly native demand and consistent with sanctions imposed on Moscow for its invasion of Ukraine, which Russia calls a “particular army operation.”
“Our workers and managers in Russia face extreme legal penalties ought to we chorus from serving native demand,” Continental mentioned.
The corporate mentioned its merchandise had been made for civilian use “as a matter of precept.”
Continental didn’t elaborate on the potential fees employees would possibly face.
“To be able to defend our workers in Russia from prosecution, we’re quickly resuming the manufacturing of passenger tires for the native market at our tire plant in Kaluga if needed,” the provider mentioned.
“The premise for this step is the responsibility of take care of our workers in Russia,” the corporate mentioned.
Continental mentioned resumption in manufacturing was not a profit-driven choice.
Continental had mentioned on March 8 mentioned that manufacturing on the Kaluga plant had been suspended.
Continental, primarily based in Hanover, Germany, ranks No. 6 on the Automotive Information checklist of prime 100 world suppliers, with 2020 gross sales to automakers of $29.7 billion.
Finland’s Nokian Tyres warned this month that EU sanctions will make it arduous to promote tires in Russia, though in March it mentioned its choice to carry onto its factories gave it management over the place the tires are bought.
Round half of the uncooked materials used to provide its tires 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 tire output in two Russian factories.
President Vladimir Putin mentioned in March that Russia may seize property of corporations that abandon their operations there.
Russian prosecutors have additionally warned some Western corporations that their workers may face arrest in the event that they shut manufacturing of important items, an individual accustomed to the matter mentioned.