As a company, Nokian Tyres has followed the situation in Ukraine with great sadness and we hope for a quick diplomatic solution to this tragedy.
A crisis management team meets daily, and we are prepared for different scenarios. We are also monitoring closely the development of sanctions and potential counter-sanctions. We have activated our contingency plans to mitigate the financial and operational impacts to our business. For example, we are shipping tires closer to our customers, securing the raw material supply to our factories, transferring production of selected key product lines from Russia to Finland and to the US, and securing transport capacity from Russia with existing and new service providers. We continue to increase production in Finland and in the US. All Nokian Tyres’ heavy tires are designed and manufactured in Finland. Tires for trucks and buses are designed in Finland and produced in the EU.
Currently, our Russian operations are impacted by transportation capacity availability, and lead-times to our customers have increased. The operations can be further impacted by raw material supply. We have been able to fulfill the customer orders despite the supply chain challenges, and continue to do our best to serve our customers and to deliver as agreed with them.
Our compliance with current sanctions requires that some of our customers and suppliers in Russia need to change their bank. In cross-border transactions, there are delays and volume is small, as the currency trading is not working normally.
For us the safety of our employees is number one priority. We will do everything we can to support our Nokian Tyres team in this situation. We have been operating in Ukraine since 2006, and during those years have built many long-lasting relationships with Ukrainian colleagues and customers. We have some 20 employees in Ukraine. We are in daily contact with our Ukrainian team, and as a first priority, we have taken measures to secure their and their families’ safety as best as we can and we will continue our help to them, both on a personal level and as an employer. In addition, Nokian Tyres has donated EUR 100,000 to UNICEF to help the children in the war zone in Ukraine.
We do not want to speculate on how the situation in general will evolve. We will announce any material direct impacts to Nokian Tyres as appropriate and in a timely manner.
Source: Nokian Tyres