The outbreak of the terrible conflict in Ukraine has led many companies to cut off their commercial and industrial relations with Russia. Among the latest companies to exit the Russian market, Nokian Tires . For the tire manufacturer , due to the war and the tightening of sanctions more possible to operate within this market.
We remind you that the company is; present in Russia since 2005. In 2021, approximately 80% of the company's car tires are now available. was produced in this country and the Russia and Asia business area accounted for approximately 20% of Nokian Tires' net sales.
Nokian Tires reports that it will launch a controlled exit process . Everything will be carried out with due regard to employees and local legislation. Obviously, Russia's exit from the market will weigh heavily. in an important way on the financial statements of the company.
Nokian Tires registrer & agrave; write-downs of around 300 million euros related to Russian assets in the second quarter of 2022, which will be recorded as non-IFRS exclusions. Taking these write-downs into account, the net value of Nokian Tires' assets in Russia and Belarus amounted to approximately 400 million euros as of May 31, 2022.
With the aim of ensuring the supply of its products , the company has decided to increase the capacity of its factories in Finland and the United States. Furthermore, he decided to go and build a completely new factory in Europe. Jukka Moisio , President and CEO of Nokian Tires, commented:
In recent months, we have witnessed shocking events in Ukraine. We followed the situation with great sadness and, together with the whole community; internationally, we unequivocally condemn the war, which has caused untold suffering to so many. Our short-term goal is; was to adapt to the highly uncertain and rapidly changing operating environment and to maintain control of our operations in Russia. After careful consideration and evaluation of various options, we have decided to rebuild Nokian Tires without a presence in Russia and to focus on the opportunities. of growth in our other key markets. Is not serious; It was an easy decision, as we have over 1,600 employees in Russia, whose skills and long-standing relationships with customers and suppliers we have built over the past 17 years.
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