Nokian Tires plant in the Leningrad region may go into idle time due to lack of raw materials

The plant of the Finnish tire manufacturer Nokian Tires in Vsevolozhsk, Leningrad Region, may go into idle time due to a lack of raw materials, informed TASS with reference to the press service of the company.

“The Nokian Tires plant in Vsevolozhsk is currently operating and will continue to operate. But due to the lack of raw materials, forced downtime of the enterprise is possible, ”the press service said.

As for the departure of Nokian Tires from the Russian market, the company said that various options are being considered, including negotiations with potential investors and localization of all enterprise processes.

August 29 Kommersant, citing sources informedthat Nokian Tires has put up for sale its plant in Vsevolozhsk – until the beginning of September, the company is collecting binding offers from potential buyers. According to the publication, there are several of them, including oil companies and profile players.

Against the backdrop of a special operation in Ukraine in April, the European Union adopted the fifth package of sanctions against Russia, which includes a ban on the import of tires into the EU. The head of the Nokian concern in the Russian Federation, Andrey Pantyukhov, said that the restrictive measures made “further work as part of the concern impossible.”

From January to June, 73% of all Nokian passenger car tire production was produced in Russia, and in 2021, Russia accounted for 20% of brand sales and 80% of output. The company estimated the loss of assets due to sanctions in the second quarter at about 300 million euros. Now the tire manufacturer is increasing production at sites in Finland and the United States.