Bridgestone Corporation, a Japanese multinational auto and truck parts manufacturer, has finalized the sale of its Russian operations to S8 Capital, a Russian diversified holding company. This transfer includes Bridgestone's production plant in Ulyanovsk and its sales office in Moscow.
The deal, which has been approved by all necessary regulatory bodies, marks a pivotal change in Bridgestone's presence in Russia, a country where it has been active since 1998. The Ulyanovsk plant, operational since May 2017 with an annual capacity of producing 2 million tires, and the Moscow office, are both part of this transaction.
Russia's Ministry of Industry and Trade confirmed the acquisition, noting that the transition will include over 1,000 Bridgestone employees who will retain their positions under the new ownership. Deputy Minister of Industry and Trade, Mikhail Yurin, commented on the deal, emphasizing the continuity of employment for these workers.
The context of this sale is rooted in Bridgestone's March 2022 decision to halt car tire production in Ulyanovsk and suspend all investments and supplies to Russia, while continuing to pay wages across its Russian divisions.
This acquisition by S8 Capital is part of a larger trend of the company expanding its footprint in the tire manufacturing sector. In May 2023, S8 Capital acquired the Russian tire assets of German Continental, including a tire manufacturing plant in the Kaluga region and a finished goods distributor, as well as Russian tire manufacturer Cordiant. In April, S8 Capital also acquired the Russian assets of Germany's Bosch located in Engels, Saratov region.
Bridgestone Corporation, recognized as the world's largest tire manufacturer, operates in 40 countries. The total investment in the Ulyanovsk project was 12.5 billion rubles, reflecting the company's significant commitment to its Russian operations prior to this sale.
The transfer of Bridgestone's Russian assets to S8 Capital represents a notable shift in the global tire manufacturing landscape and is indicative of the ongoing adjustments in international business relationships involving Russian companies.
