Nokian Tyres’ Board of Directors has decided to initiate a controlled exit from the Russian market, as it is no longer feasible nor sustainable for the company to continue operations there.
The exit preparations will start immediately, and the company will evaluate different options for this. The process will be done with due consideration to local employees and legislation.
As part of the process, Nokian Tyres will record impairments of approximately EUR 300 million related to the Russian assets in the second quarter of 2022.
Taking the impairments into account, the value of Nokian Tyres’ net assets in Russia and Belarus totalled approximately EUR 400 million on May 31, 2022.
To secure supply of its products, Nokian Tyres has continued to increase capacity at its factories in Finland and in the US, and has decided to invest in completely new capacity in Europe.
The company announced earlier in the year that it had stopped investments into the Russian facility and started transferring production of selected key product families from Russia to its other factories.
Nokian Tyres has been operating in Russia since 2005. In 2021, approximately 80% of the company’s passenger car tires were produced in Russia and the business area Russia and Asia represented approximately 20% of Nokian Tyres’ net sales.
