New EU sanctions prompt Nokian to accelerate production plans

Nokia, Finland – Nokian Tyres is to accelerate plans to increase production at its facilities in Finland and the US in response to the EU’s latest trade sanctions against Russia.

On 8 April, the EU anounced a ban on the import of tires from Russia and export of certain raw materials from the bloc to Russia,as well as restrictions on the transport of goods and materials from and to that country.

These measures, said Nokian, “will have a significant impact on [its] ability to manufacture tires in Russia, and ability to sell tires both in Russia and in the EU, specifically in Central Europe.”

In 2021, Russia accounted for around 20% of Nokian’s net sales, while about 80% of Nokian passenger car tires were produced in Russia, the company noted.

Meanwhile, of the raw materials for tires produced in Russia, about half came from outside of Russia, said Nokian.

The Finnish tire maker added that the supply-chain restrictions would also have a significant impact on its ability to continue production in Russia.

In response, the company is “expediting” plans to invest in new production capacity in Europe by continuing “to increase production capacity at our factories in Nokia, Finland and Dayton, US.”

In the future, Nokian stated, “all tires sold in the Nordic countries will be produced in Nokia, Finland, and all tires sold in North America will be produced in Dayton, US and in Nokia, Finland.”

Nokian pointed out that its Heavy Tyres business was not impacted by the ban to import tires from Russia to the EU, as all production is located in Finland.

“Sales and distribution of heavy tires to Russia has been stopped already earlier,” stated the company, adding that it had “never sold tires to the Russian army, and the Russian Federation is not a customer of Nokian Tyres.”