Bridgestone initiates process to find local buyer for Russian assets

Tokyo – Bridgestone Corp. has initiated a process to find a domestic buyer for its Russian assets, in light of “the general uncertainty and the ongoing supply issues” in the country.

The Japanese tire maker, which has suspended all activities in Russia since 18 March, said it had carefully considered the long-term solution in the interest of its employees, customers and suppliers.

Bridgestone has been present in Russia since 1998 and has over 1000 employees in the country, mainly at its tire manufacturing plant in Ulyanovsk and sales and marketing office in Moscow.

The process of finding a buyer and closing a deal is expected to take "several months" to complete, said the tire maker in a statement 31 Oct.

Located in the Zavolzhye industrial park and spanning 80.6 hectares, the Ulyanovsk facility was officially launched in December 2016.

As of December 2021, the plant had rolled out 5 million tires and employed 900 people.

According to Bridgestone, the plant is "one of the most advanced among all Bridgestone enterprises in the world."

Product portfolio includes tires with standard sizes ranging from 13 to 19 inches - for cars, crossovers and SUVs, as well as tires homologated for supply to automakers as original equipment.

Bridgestone said the Russian operation contributed less than 2% of the group's total annual revenue.

The group said it supported its Russian employees by paying their salaries and employee benefits in full since the suspension of activities in March.