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Bridgestone exits Russia and sells assets to S8 Capital

Publish Date: 2023.12.22

  According to foreign media reports, on December 20th, tire manufacturer Bridgestone announced that it had sold its Russian assets to S8 Capital and that the transaction had obtained all necessary regulatory approvals. S8 Capital, as a Russian holding company, has acquired multiple assets from Western companies that have withdrawn from the Russian market.


  "The agreement will include the sale of Ulyanovsk's tire manufacturing plant and Bridgestone's sales and marketing department in Moscow," Bridgestone said. "The transfer of assets to S8 Capital has little impact on the overall forecast for 2023." The company also stated that approximately 1000 employees in Russia will be transferred to S8 Capital. ". At present, the price of the transaction has not been disclosed.


  Image source: Bridgestone


  Bridgestone has been conducting business in Russia since 1998. However, affected by the Russia-Ukraine conflict, the company suspended all production activities in Russia in March 2022 and frozen new investment, just like many foreign enterprises. In 2022, due to uncertainty and ongoing supply issues, Bridgestone, headquartered in Tokyo, began searching for buyers.


  Bridgestone stated last year that Russia accounted for less than 2% of its revenue.


  On the other hand, S8 Capital stated that the annual production capacity of the Ulyanovsk factory is 2.4 million tires. Based on the assets previously purchased by the company from tire manufacturers Continental and Cordiant, S8 Capital's annual tire production capacity is expected to exceed 15 million units.


  S8 Capital stated, "According to the terms of the transaction, Bridgestone's trademark and brand will not be transferred to the new owner."


  S8 Capital is owned by Russian entrepreneur Armen Sarkisian, and its main business involves IT solutions in the finance, retail, and telecommunications sectors.


  In addition, the company has acquired Russian assets previously owned by elevator manufacturer Otis Worldwide Corp and German technology group Bosch.


  This article is reprinted from Gaishi Automotive Information Network


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