Finland’s Nokian Tyres joins peer Michelin in exiting Russia

An worker types Nokian tyres at a tyre assembling centre and store in Moscow, August 8, 2014. REUTERS/Maxim Shemetov

COPENHAGEN, June 28 (Reuters) – Finland’s Nokian Tyres (TYRES.HE) mentioned on Tuesday it might provoke a “managed exit” from the Russian market, having already scaled down the manufacturing of its Russian tyre plant after Moscow’s invasion of Ukraine.

The announcement adopted the same transfer earlier on Tuesday by its French peer Michelin (MICP.PA) which mentioned it might hand over its Russian operations to native administration. learn extra

Nokian Tyres, which used to make 80% of its passenger automobile tyres in neighbouring Russia, mentioned it might consider totally different choices for the exit.

“The method will likely be finished with due consideration to native staff and laws,” it mentioned in an announcement.

The corporate has continued to extend capability at its factories in Finland and in the US to safe provide of its merchandise, and has determined to put money into fully new capability in Europe.

It introduced earlier within the 12 months that it had stopped investments into the Russian facility and began transferring manufacturing of chosen key product households from Russia to its different factories.

“As a part of the method, Nokian Tyres will report impairments of roughly 300 million euros ($316 million)associated to the Russian property within the second quarter of 2022,” the corporate mentioned in an announcement.

Taking the impairments under consideration, the worth of its web property in Russia and Belarus totalled roughly 400 million euros on the finish of Could, the corporate added.

Nokian Tyres has been working in Russia since 2005. In 2021, the enterprise space of Russia and Asia represented roughly 20% of its web gross sales.

($1 = 0.9504 euros)

Reporting by Anne Kauranen; Enhancing by Edmund Blair andn David Evans

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