The EU has announced new sanctions against Russia, impacting Nokian Tyres’ business. The sanctions prohibit the import of tyres from Russia to the EU, prohibit the export of certain raw materials from the EU to Russia, and limit transportation from and to Russia. Source: Timberbiz
New sanctions will have a significant impact on Nokian Tyres’ ability to manufacture tyres in Russia, and ability to sell tyres both in Russia and in the EU, specifically in Central Europe.
In 2021, Russia represented approximately 20% of Nokian Tyres’ net sales, and approximately 80% of Nokian Tyres passenger car tyres were produced in Russia.
Of raw materials for tyres produced in Russia, approximately half came from outside of Russia. Raw material availability and its logistics will have a significant impact on the company’s capability to continue production in Russia.
Nokian Tyres is expediting its plans to invest in new production capacity in Europe. The company will continue to increase production capacity at its factories in Nokia, Finland and Dayton, US.
In the future all tyres sold in the Nordic countries will be produced in Nokia, Finland, and all tyres sold in North America will be produced in Dayton, US and in Nokia, Finland.
The Heavy Tyres business of Nokian Tyres plc is not impacted by the ban to import tyres from Russia to the EU, as all Nokian Tyres’ heavy tyres are produced in Finland.
Sales and distribution of heavy tyres to Russia has been stopped already. Nokian Tyres has never sold tyres to the Russian army, and the Russian Federation is not a customer of Nokian Tyres.
