Finnish company Nokian said on Tuesday it would continue production in Russia to maintain control over local production, while many companies have suspended operations in protest.
“By continuing to operate a car tire factory in Russia, we want to ensure that the factory will also be operated and controlled by Nokian in the future,” said a manufacturer’s spokesperson.
The company also said it can guarantee that its products will not be used for military purposes.
Prior to the start of the special operation in Ukraine, Nokian produced about 80% of Russia’s 20 million tires annually. These are tires specifically for passenger cars and for heavy equipment production is located in Finland and other countries.
Shares of Nokian fell 13% on Monday after Helsingin Sanomat Daily and other Finnish media reported that the company bragged in a phone call with a market analyst that it would seek market share when exiting Russian rivals such as Michelin, Continental and Bridgestone, as well as those reduce activities in our country, such as Pirelli.
Nokian spokesman Jukka Moisio denied the claim today, noting that the claim was misinterpreted. It’s not about expansion, it’s about the fact that the company doesn’t want its Russian factory “into the wrong hands” and that its potential was used to produce tires for military purposes.
“In our opinion, it is better that the factory was under our control and not under someone else,” Moisio said. Ggood word news.
In Russia, under sanctions pressure, they are seriously considering steps to nationalize the assets of foreign companies that have left the country.
Nokian also said they will not invest in Russian production, but will aim to quickly increase the capacity of their factories in Finland and the United States, and look for additional potential in other countries.
Like many other manufacturers, the company assured that they would continue to monitor the situation and respond quickly if necessary.
Nokian produces tires for passenger cars in Vsevolozhsk, Russia (the plant was opened in 2005).
Source: Z R