Nokian relocates part of its production from Russia21. 03. 2022 Monday / By: Robert Denes / Business / Exact time: BST / Print this page
T ire stores estimate that the impact on demand for Nokian Tires ’products will only become apparent when the warmest rubber season begins in the spring.
According to the latest information, the company estimates that it will benefit from the fact that several Western competitors have announced that they will withdraw from the Russian market due to the war in Ukraine. Nokian Tires continued production at its plant near St. Petersburg.
However, the director of investor and media relations at Nokian Tires said in the same newspaper article that the company does not want to take advantage of the situation in Russia and that analyst ratings are their own interpretation.
Nokian Tires fell sharply on the Helsinki Stock Exchange on Monday in response to the events. The stock was down more than 13 percent in the afternoon and Nokian Tires was down more than 30 percent in March.... Nokian Tires fell sharply on the Helsinki Stock Exchange on Monday in response to the events. The stock was down more than 13 percent in the afternoon and Nokian Tires was down more than 30 percent in March. The damage to Nokian Tires' reputation has already been reflected in tire stores. An interview with Yle Tampere and a telephone call to companies in Pirkanmaa reveal that customers were interested in the country of origin of the tires. NOKIA, Finland - In response to the Russian invasion of Ukraine, Nokian Tires PLC has relocated production of some key production lines from its Russian plant to plants in Finland and the United States, while "providing transport capacity from Russia to existing and new service providers." The Finnish tire manufacturer said its plant in Vsevolozsk, near St. Petersburg, is operating "normally" at full capacity, and production relocation began in September, months before the invasion, its growth strategy. “We have activated our contingency plans to mitigate the financial and operational impact on our business,” the company said in a statement. "For example, we deliver tires closer to our customers, ensure the supply of raw materials to our factories, and move the production of selected key product lines from Russia to Finland...." The plant, which employs 1,600 people in Russia, has reported net sales of about $ 378 million in Russia and Asia. Nokian is one of seven international tire companies with factories in Russia. Bridgestone Corp., Continental AG, Michelin Group, Pirelli Tire, Titan International Inc. and Yokohama Rubber Co. Ltd. are among the other four domestic manufacturers. Nokian said it was monitoring the situation with "great sadness" and hopes that "a diplomatic solution to the tragedy will be found quickly. For us, the safety of our employees is our number one priority. We will do our best to support our Nokian Tires team in this situation." The company said all heavy tires are manufactured in Finland. “We don’t want to speculate on possible future sanctions or how the situation will turn out in general,” Nokian said. "All material direct effects will be reported to Nokian Tires as and when required." According to the U.S. Census Bureau, the value of tires imported from the United States from Russia last year was $ 47.1 million (1.14 million pieces), representing less than 0.3% of total imports, while imports from Ukraine accounted for 12.6 percent. million dollars (450,930 pieces). Roughly 75% of Russian imports ($ 35 million, 901,000 units) were passenger car units, and 94% of Ukrainian imports were in the passenger tire category.