Nokian continues operations in Russia to maintain assets

Nokia, Finland – Nokian Tyres is continuing to operate its passenger car tire production plant in Vsevolozhsk, Russia while ‘actively looking for additional capacity’ elsewhere.

By continuing to operate the Russian plant, Nokian said it wanted "to make sure that the factory is operated and controlled by Nokian Tyres also in the future.

“We no longer invest into the Russian production,” the Finnish tire maker emphasised in a 22 March statement.

In addition, the tire maker said it is accelerating plans to increase production capacity at its factories in Finland and the US.

Accordingly, all tires sold in the Nordic countries in the future will be produced in Nokia, and all tires sold in North America will be produced in Dayton, US as well as in Nokia.

The company explained that it aims to become "geographically more diversified in its manufacturing operations."

All Nokian’s heavy tires are designed and manufactured in Finland. Tires for trucks and buses are designed in Finland and produced in the EU.

The company said it did not accept orders for heavy tires from Russia.

On the ongoing war in Ukraine, Nokian said it has followed the situation “with great sadness”, expressing hope for “a quick diplomatic solution to this tragedy.”

“Over half of our Ukrainian employees are male and cannot leave the country, but we assist them in any way possible given the current situation,” the company added.

Nokian generated €336 million, about 20% of group sales, from its tire production operations in Russia last year.

The company's 1,600-employee plant near Saint Petersburg has capacity to produce 17 million units/year of radial passenger car and light truck tires.