Nokian Tyres to rebuild without presence in Russia

50
1
Nokian Tyres to rebuild without presence in Russia

"We have followed the situation with great sadness and we, together with the whole international community, unequivocally condemn the war, which has caused unavoidable suffering to so many," said Jukka Moisio, CEO of Nokian Tyres.

Our focus has always been on adapting to the changing operating environment and keeping control of our operations in Russia. In 2021, the company generated 80 percent of its car tyres and generated 20 percent of its revenue in Russia.

Moisio revealed that after a thorough evaluation of various options, the company decided to rebuild itself without presence in Russia. This was not an easy decision because over 1,600 employees in Russia whose expertise we highly value, as well as many long-standing customer and supplier relations built over the past 17 years, he said.

Nokian Tyres will record a roughly 300 million-euro asset impairment in the second quarter due to the depreciation of its assets in Russia, leaving it with around 400 million euros worth of assets in Russia and Belarus in May.

The share price has dropped by almost two-thirds since the beginning of the year due to the risks associated with its assets in Russia, according to Helsingin Sanomat.