Following its decision to exit Russia, the tire plant in the Leningrad region will rebrand and seek new markets, as regional governor Alexander Drozdenko stated during a briefing. The move signals a shift in strategy for a facility that has long been a regional economic anchor.
There will be challenges for Nokian Tires, because the company may either sell its business or hand it over to new management. Yet the real hurdle is the branding itself; the familiar label is unlikely to remain, and a different brand will need to win over customers and win new markets. The plant’s output is substantial, with the Vsevolozhsk facility described as among the world’s largest in scale. Management will have to devise routes to continue channels of supply, since tires were previously shipped to Europe, Canada, and the United States, while some unfriendly countries restricted imports from Russia.
The Finnish maker had previously decided to withdraw from Russia in response to the special operation in Ukraine and the tightening of sanctions by Western economies.
By the end of June, the company informed regional authorities of the Leningrad region, with party consent, about laying off 300 workers at the Vsevolozhsk plant. The facility produces about 14 million tires each year, underscoring its significant production capacity and employment impact on the local economy.
A photo caption: Nokian