Nokian shifting production out of Russia to Finland and USA

[UG_Passat]

Nokian shifting some production out of Russia

Nokian Tyres P. L.C. said Friday it has moved production of some key lines from Russia to Finland and the U.S., as the company reacts to the Russian invasion of Ukraine.

www.tirebusiness.com

NOKIA, Finland — Reacting to the Russian invasion of Ukraine, Nokian Tyres P. L.C. has moved production of some of its key lines out of its plant in Russia to plants in Finland and the U.S., while securing "transport capacity from Russia with existing and new service providers."

The Finnish tire maker said in a statement that its plant, located in Vsevolozhsk, near St. Petersburg, is operating "normally," at full capacity, and that the shift in production had begun in September, months before the invasion, as part of its growth strategy.

We have activated our contingency plans to mitigate the financial and operational impacts to our business," the company said in a statement posted on its website.

"For example, we are shipping tires closer to our customers, securing the raw material supply to our factories, transferring production of selected key product lines from Russia to Finland ...."

The Russian factory has 1,600 employees, according the the company, reporting net sales in Russia and Asia of around $378 million.

Nokian is one of seven international tire companies with factories in Russia. Bridgestone Corp., Continental A.G., Michelin Group, Pirelli Tyre, Titan International Inc. and Yokohama Rubber Co. Ltd. are the the others, along with four domestic makers.

None of the others thus far have commented on what actions they have taken or might take in light of the situation.

Nokian said it has been monitoring the situation "with great sadness," and is hoping "for a quick diplomatic solution to this tragedy. For us the safety of our employees is number one priority. We will do everything we can to support our Nokian Tyres team in this situation."

The company said all of its heavy tire production is done in Finland.

"We do not want to speculate on possible future sanctions or how the situation in general will evolve," Nokian said. "We will announce any material direct impacts to Nokian Tyres as appropriate and in a timely manner."

According to data from the U.S. Census Bureau, U.S. imports of tires from Russia last year were valued at $47.1 million (1.14 million units), or less than 0.3% of total imports, while imports from Ukraine totaled $12.6 million (450,930 units).

Roughly 75% of Russian imports ($35million, 901,000 units) were passenger tire units, and 94% of Ukraine imports were in the passenger tire category.

There are four tire manufacturers in Ukraine: C.J.S.C. Rosava; Dneproshina J.S.C.; Eurotire Inc.; and Valsa Bila Tserkva Tire Factory.

 

[Ignatius]

Good, I love Nokian as a brand and a company. I would love to see more production and availability of their products in the United States.

 

[Owen Lucas]

I wonder if Russia will allow Nokian to take their tire making equipment out of the country. Wouldn't be surprised if it was confiscated.

 

[BillyHW]

I wonder if Russia will allow Nokian to take their tire making equipment out of the country. Wouldn't be surprised if it was confiscated.

I think we'll be seeing a lot of counterfeit tires coming out of Russia in the future.

 

[slacktide_bitog]

Nokian is Russia's largest exporter of consumer goods

 

[SwampSurvivor]

I'd pay the unusually high prices that Nokians command for a set made in the USA!

The set on my parents' escape is Finland.

 

[JohnnyG]

This is a direct impact on the sanctions imposed by the financial network. Nokian cannot get paid if the SWIFT system won't allow the payments to go through. Same thing with Apple. Apple however said it couldn't ever cut China off from its products since 60% of its sales and 50% of its manufacturing happen to be located there.

 

[jjf729]

The Nordman Solstice tires I put on my van in November were made at Nokian’s Russia factory.

 

[Leo99]

I think we'll be seeing a lot of counterfeit tires coming out of Russia in the future.

I don't think we're going to be seeing much of anything coming out of Russia in the future.

 

[Bjornviken]

I don't think we're going to be seeing much of anything coming out of Russia in the future.

True, Russia have underestimate west. And shoot its self in the foot... no maybe more in the head

 

[Eddie]

I think RUSSIA has underestimated how the WORLD would react to their waring.

 

[Bjornviken]

China, India, and Itan will gladly partner with them and take as much cheap petro supplies as the Russians are willing to sell them. On the other hand the countries that sanction Russia will be forced into dependence on US oil and gas which will be substantially more costly. Sanctions will not hurt Russia at all but they could potentially cripple Europe, Europe has shot itself in the foot by its vassal affiliation with the US and they become more of an economic slave to America. Perhaps that was part of the plan all along for the USA. For example these sanctions ended a major pipeline project that Germany and Russia were completing.

Your so wrong with that, Eu dont want to be a vassal for Russia. You simply cant trust Russia

 

[PandaBear]

They would have no choice, I am not sure how would Russia get rubber and how would they sell the tires considering their sanctions are in place. You can only smuggle so much from Mongolia and other "iffy" nations on earth before they too get the sanction hammers.

 

[PandaBear]

I wonder if Russia will allow Nokian to take their tire making equipment out of the country. Wouldn't be surprised if it was confiscated.

I think we'll be seeing a lot of counterfeit tires coming out of Russia in the future.

China, India, and Itan will gladly partner with them and take as much cheap petro supplies as the Russians are willing to sell them. On the other hand the countries that sanction Russia will be forced into dependence on US oil and gas which will be substantially more costly. Sanctions will not hurt Russia at all but they could potentially cripple Europe, Europe has shot itself in the foot by its vassal affiliation with the US and they become more of an economic slave to America. Perhaps that was part of the plan all along for the USA. For example these sanctions ended a major pipeline project that Germany and Russia were completing.

These statements sum up what may happen in the future. Investment in Russia and Ukraine will surely slow down if not stopped due to geopolitical risk of things getting bombed or confiscated. When there's money to be made there will be smuggling. If you can smuggle weapons into the Middle East war zone you will be able to smuggle civilian goods into Russia. Even back in the cold war and WW2 there were smuggling. I'm sure Russia already consider that before launching any military operation.

What most likely will happen is a lot of the stuff sold would be changing hand in the civilian market, in China, Pakistan border, Mongolia, Serbia, Turkey (they are in financial trouble so they will turn a blind eye for profit), Burma, Cambodia, etc. Heck they are doing fine trading Poppy and Heroine there already so might as well add some Russian oil and Asian rubbers.

I don't think Russia would intentionally mess with Finish tire companies, they may still be a good partner in the long run especially if they need domestic tires. What they may do is they may mess with the German companies and US companies in the former Soviet nations.

 

[krzyss]

It seems that it is better to be US vassal state than Russia/Soviet one.
Joke from communist times in Poland:
"How to improve economy in one day?
...
Declare war on the USA and sign capitulation next day."

Putin had no problem telling Sweden and Finland that they must not join NATO. He will have no problem nationalizing Nokian factory. They did it before.

Germany with NS and NS2 and energy imports from Russia funded current war, unluckily.

I think Nokian just lost 1/3 of its manufacturing capacity. They may sell Russian made tires in Russia and its vassals, but they may be prevented even doing it by expanding sanctions.

Krzys

 

[2EHA]

500% short sighted brain dead decision. putin and everybody around him in the decision room are not masterminds. 8 years ago he could have found a way to cut the tails off maidan before it became a problem. now he pays the price

all his friends are crying about no more benz for them

 

[Bjornviken]

The overwhelming majority of European nations ARE IN FACT vassal states of the United States and have been since WW2. Russia is not seeking to make any European country a vassal state, selling cheaper oil and gas resources to a European country does not equate to that.

If I am another country right now I don't know how you can trust the United States. 81% of military conflicts since WW2 have been initiated by the United States as well as countless governments that have been overthrown by invasions or coups that are called color revolutions, national leaders that get assassinated, plus encroachment upon other nations' physical and economic security. Russia, be it the Federation or former Soviet Union, as bad as they may be or have been has in reality not really done a whole heck of a lot as far as interfering and the affairs of other nations militarily or economically comparatively speaking.

Perhaps Americans are just jealous because they're so used to seeing their country doing what they condemn Russia for doing now? And by the way I'm an American and a military veteran and I am in no way an apologist for Russia and/or the Soviet Union, for the moral high ground America always loves to claim they did everything they possibly could to make this horrible reality in Ukraine come to fruition and now it seems everyone other than the United States is going to have to suffer as a result.

interfering and the affairs of other nations militarily or economically comparatively? Ok, if you would been living in Finland or in a small country near Russian border i think you would have different view on Russia.

 

[nthach]

all his friends are crying about no more benz for them

even though North Korea is a sanctioned country, Kim Jong-Un is a VIP at Mercedes-Benz AG and LVMH. And if you’re a clandestine state, you can forge documents or go by an alter ego to get what you want.

 

[Astro14]

OK. That’s enough political talk. Lock time.