Nokian Tires is completely exiting the Russian market

30. 06. 2022 Thursday / By: Robert Denes / Business / Exact time: BST / Print this page

C OPENHAGEN, JUNE 28. 2022. - Finnish Nokian Tires announced on Tuesday that it is launching a "controlled exit" from the Russian market after already reducing production at its Russian tire plant following Moscow's invasion of Ukraine.

The announcement followed a similar move on Tuesday by French Michelin company (MICP.PA), which announced it would hand over its operations in Russia to local management. Nokian Tires, which manufactured 80% of its passenger car tires in neighboring Russia, said it would look into various options for exiting.

"The procedure will be carried out with due regard for local staff and the law," the statement said.

The company continued to increase the capacity of its plants in Finland and the United States to ensure the supply of its products and decided to invest in entirely new capacity in Europe.

Earlier this year, it announced that it had stopped investing in a facility in Russia and began manufacturing selected key product families from Russia to other plants.

“As part of the process, Nokian Tires will recognize approximately EUR 300 million ($ 316 million) in impairment losses on Russian assets in the second quarter of 2022,” the company said in a statement.

Taking into account the impairments, the net assets in Russia and Belarus amounted to approximately EUR 400 million at the end of May, the company added.

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