International. Nokian Tires announced that it has completed the sale of its Russian operations to PJSC Tatneft after completing registration formalities in Russia. Nokia Tyres has now ended all its operations in Russia.
Nokian Tyres has been operating in Russia since 2005. In 2021, approximately 80% of the company's passenger car tires were produced in Russia and the Russia and Asia business area accounted for approximately 20% of Nokian Tyres' net sales, according to the company.
This move follows the announcement by Nokian Tyres' Board of Directors in June 2022 that it would initiate a controlled exit from the Russian market. Due to the war in Ukraine and subsequent stricter sanctions, they felt that it is no longer feasible or sustainable for Nokian Tires plc to continue operating in Russia.
"Over the past few months, we have witnessed shocking events in Ukraine. We have followed the situation with great sadness and we, together with the entire international community, unequivocally condemn the war, which has caused unspeakable suffering to so many," Jukka Moisio, Chairman and CEO of Nokian Tyres, said last June.
"Our near-term focus has been on adapting to the highly uncertain and rapidly changing operating environment, and maintaining control of our operations in Russia," he said at the time.
"After careful consideration and evaluation of various options, we have decided to rebuild Nokian Tyres without a presence in Russia and focus on growth opportunities in our other core markets."
"This was not an easy decision given that we have more than 1600 dedicated employees in Russia whose experience we value very much, as well as many lasting relationships with customers and suppliers built over the past 17 years," Moisio continued.
To secure the supply of its products, along with the June 2022 announcement, Nokian Tyres said it has continued to increase capacity at its factories in Finland and the US, and has decided to invest in completely new capacity in Europe.
The company announced earlier in the year that it had halted investments in the Russian facility and began transferring production of selected key product families from Russia to its other factories.
