Bridgestone expects to exit Russia within months, looking for buyer for local assets

MOSCOW. Oct 31 (Interfax) - Bridgestone has begun the processing of looking for a buyer for its Russian assets, the Japanese tire manufacturer said in a statement.

The company said it is looking for a local investor. The process of finding a buyer and completing the sale is expected to take several months, Bridgestone said.

Bridgestone, which has had a presence on the Russian market since 1998, employs more than 1,000 people at its plant in Ulyanovsk and office in Moscow. The Russian business generates less than 2% of the company's worldwide revenue.

In March, after the start of the conflict in Ukraine, Bridgestone announced a freeze on new investments in Russia and the suspension of its Ulyanovsk plant.

As the Russian Ministry of Industry and Trade said in an announcement, the company has continued to pay employees their salaries in full since March, retaining all benefits and compensation programs.

"Moreover, work continues on optimization of logistics and raw material supplies. Bridgestone has always been interested in finding a long-term solution for the company's employees and business partners, so today they are considering transferring their assets in Russia to a local buyer - a third party or local management," the ministry said.

According to the Industry and Trade Ministry, the capacity of Bridgestone's Russian tire production plant is 2.4 million tires per year. The company employs more than 1,000 employees in its Russian division.