Japan’s Bridgestone Corp, one of the world’s top tyremakers, said on Wednesday it had sold its Russian assets to S8 Capital, a Russian holding company that has now scooped up a handful of assets from leaving Western firms.
Bridgestone, present in Russia since 1998, decided in March 2022 to suspend all manufacturing operations and freeze new investments in Russia following the Moscow’s invasion of Ukraine, a step taken by many other foreign companies.
Tokyo-based Bridgestone, which cited uncertainty and ongoing supply problems when it started looking for a buyer in 2022, said its around 1,000 employees in Russia would transfer to S8 Capital. The deal’s price was not revealed.
“The agreement includes a tyre manufacturing plant in Ulyanovsk and a sales and marketing office in Moscow,” Bridgestone said. “The impact of the transfer of its assets to S8 Capital on its consolidated projections for 2023 is to be minor.”
Russia represented less than 2 per cent of its sales, Bridgestone said last year. The deal has gotten all necessary regulatory approvals, it said.
S8 Capital said the Ulyanovsk plant had production capacity of 2.4 million tyres per year. Adding to its earlier purchases of assets formerly owned by tyremakers Continental and Cordiant, S8 assets will now have production capacity of more than 15 million tyres annually.
“According to the terms of the deal, Bridgestone’s trademarks and brands are not transferred to the new owner,” S8 Capital said.
S8 Capital has also purchased assets previously owned by elevator maker Otis Worldwide Corp and German technology