Many of the company’s competitors have announced temporary suspension of operations in Russia, including firms like Continental, Michelin and Bridgestone.
Finland-based tyre manufacturer Nokian Tyres said on Tuesday that it plans to increase production levels at its domestic and US factories but will continue production of passenger vehicle tyres at its plant in Russia.
Nokian faced a public backlash after saying it was not planning to suspend operations in Russia, as many other international firms have done in response to the country’s deadly onslaught and invasion of Ukraine.
Many of the company’s competitors have announced temporary suspension of operations in Russia, including firms like Continental, Michelin and Bridgestone.
While Nokian’s decision appears to have hurt its public image, it also hurt the value of its shares on the stock market, which dropped nearly 14 percent over this past weekend.
On Tuesday, the company announced it would boost output at its production facilities in Finland and the US, but still planned to continue operations at its Russian plant — however, the firm noted it would not invest further in Russian production.
“By continuing to operate the passenger car tyre factory in Russia we want to make sure that the factory is operated and controlled by Nokian Tyres also in the future. We no longer invest into Russian production,” the company’s statement read.
80% of Nokian’s car tyres made in Russia
About 80 percent of Nokian’s passenger vehicle tyres come from its facility in Russia, but that is going to change, the company said.
“According to the plan, all tyres sold in the Nordic countries in the future will be produced in Nokia, Finland, and all tires sold in North America in the future will be produced in Dayton, (Ohio) US and in Nokia, Finland. The company is actively looking for additional capacity and aims to become geographically more diversified in its manufacturing operations,” the statement said.
The company said it did not want to speculate about how the situation would evolve.
“We will announce any material direct impacts to Nokian Tyres as appropriate and in a timely manner. We continue to assess the situation and are prepared for rapid responses when needed,” the company said.
Nokian’s release on Tuesday began with a statement that the company has followed the situation in Ukraine “with great sadness,” and that it hoped for a “quick diplomatic solution to this tragedy.”
It said the firm was in daily contact with its roughly 20 team members in Ukraine.
“We have helped and continue to help our employees and their families to stay safe. 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. In addition, Nokian Tyres has made a donation to Unicef to help the children in the war zone in Ukraine,” the statement read.
In a separate announcement on 8 March, the company said that it donated 100,000 euros to Unicef for children in Ukraine.
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