Continental suspending manufacturing in Russia, sending workers on paid idle time
German concern Continental is suspending production in Russia, the press service of Continental Kaluga LLC, the concern's Russian division, told Interfax.
In accordance with the labor code of the Russian Federation, employees have been sent to idle time with payment of 2/3 of the average salary. The period for which production is suspended has not yet been determined.
"During this period, the company will continue to fulfill its obligations to its customers and ship products from the warehouse," the source said.
Continental has two enterprises in Kaluga, a tire production plant and a ContiTech automotive component plant. Continental also operates a plant for manufacturing automotive technologies, Automotive Technologies sector, in Chistopol, Tatarstan.
The Continental Kaluga plant was commissioned in 2013 in the Rosva industrial park near Kaluga, and investments in the project overall totaled 240 million euros. The plant produces tires of the Continental, Gislaved, and Matador brands ranging in size from 13 to 21 inches. The plant collaborates with Renault, Ford, Avtovaz, Nissan, and Volkswagen.
The ContiTech plant was opened in the Kaluga Region in 2014, and investments in the enterprise overall totaled 17 million euros. The company manufactures hose lines for air conditioning and power steering systems.