© Reuters. FILE PHOTO: An worker kinds Nokian tyres at a tyre assembling centre and store in Moscow, August 8, 2014. REUTERS/Maxim Shemetov/File Picture
HELSINKI (Reuters) – Finnish tyre maker Nokian Tyres stated on Monday new sanctions imposed by the European Union (EU) on Russia can have a big affect on its manufacturing.
The sanctions, introduced on Saturday, ban the import of tyres from Russia, Nokian stated, and can have an effect on the corporate’s capability to promote tyres each in Russia and within the EU, particularly in Central Europe.
The sanctions may even prohibit the export of sure uncooked supplies from the EU to Russia and restrict transportation from and to Russia, the corporate added.
In 2021, Russia accounted for about a fifth of the corporate’s web gross sales, with roughly 80% of its passenger automobile tyres produced within the nation. Round half of the uncooked materials used to supply tyres in Russia got here from outdoors the nation, Nokian Tyres stated.
“Uncooked materials availability and its logistics can have a big affect on the corporate’s functionality to proceed manufacturing in Russia,” it stated in a press release.
The corporate stated it will expedite plans to spend money on new manufacturing capability in Europe, whereas additionally boosting capability at its current factories in Finland and america.
“The Heavy Tyres enterprise of Nokian Tyres plc shouldn’t be impacted by the ban to import tyres from Russia to the EU, as all Nokian Tyres’ heavy tyres are produced in Finland,” it stated.
