(Active Nengdong, July 1, 2022) Finland's Nokian Tires (Nokian Tyres) said that the company's branch in Russia may continue to operate, and the factory in Vsevorozhsk will also maintain production. However, the company said a final decision on further operating mechanisms has not yet been made and negotiations with the parent company will be completed in the third quarter of this year. Just the day before, Nokian Tire officially announced that it would withdraw from the Russian market.
The sanctions imposed by the EU have made it impossible for Nokian to continue working in Russia. Russia Nokian Tire's management is preparing to submit a proposal to the company's board of directors regarding the company's future autonomous business model in Russia. Approval would allow us to continue operating in Russia. However, the board needs more time to make a decision. In addition, the Board may consider other potential decisions as part of a controlled exit from the market. Nokian will continue to maintain operations in Russia, including tire production at the Vsevorozhsk plant, and has no plans to further layoffs, although output at the plant has been reduced, and the products produced are mainly for export, because in the EU Following the implementation of the fifth round of sanctions, the company will no longer be able to export tires produced at the Vsevolozhsk tire plant after July 11. On Tuesday local time, Nokia Tire announced on its website that due to the situation in Ukraine, the company decided to initiate a controlled withdrawal from the Russian market. The company stressed that the process will be completed with due consideration to local employees and laws. Nokian Tire has 1,600 employees in Russia. The Finnish tire manufacturer notified Russia's Leningrad region authorities in July that it would lay off more than 300 people at the local factory. Nokian Tire will record sales with Russia in the second quarter of 2022 Asset-related impairment of approximately EUR 300 million. The company announced earlier this year that it had ceased investment in Russian factories and began moving production of selected key product lines from Russia to other factories. Nokia Tires has been operating in Russia since 2005. In 2021, approximately 80% of the company's passenger car tires were produced in Russia, and the Russian and Asian business regions accounted for approximately 20% of Nokia Tire's net sales.
