Nokian Tyres

Nokian Tyres is a manufacturer of tires for cars, trucks and industrial equipment, as well as the owner of the Vianor tire center network. The concern owns two of its own plants - in the city of Nokia (Finland) and in the city of Vsevolozhsk (Russia).

Nokian Tires plc is listed on NASDAQ Helsinki.

At the end of Q2 2021, Nokian Tires employed 4,822 employees.

Business in Russia

2023: TATNEFT bought Russian business Nokian Tyres at a price 125 million euros lower than previously announced

TATNEFT bought the Russian business Nokian Tyres at a price of 125 million euros lower than previously announced. This became known on March 16, 2023.

Initially, the companies agreed to sell the assets of Nokian Tyres in the Russian Federation of Tatneft for 400 million euros. As a result, the value of the transaction amounted to 285 million euros, Nokian Tyres has already received this money.

The final value of the deal between Nokian Tyres and Tatneft amounted to 285 million euros

After passing registration formalities in Russia, the transaction will be completed, and Nokian Tyres' activities in Russia will cease, the Finnish company said in a statement dated March 16, 2023.

Earlier, the deal was approved by the government commission of the Russian Federation for control over foreign investments, but limited the permissible price of 23.05 billion rubles.

The exit process has been long, but we are pleased that we are at its final stage, "said Yucca Moisio, president of Nokian Tires.

It is noted that the final results of the transaction will be reflected in the report for the first quarter of 2023, which will be presented on April 25.

LLC Nokian Tyers, LLC Hakka Invest and LLC Nokian Shina, which were engaged not only in the production of products, but also were present in the Russian financial market and were engaged in logistics, become the property of Tatneft. At the same time, tires under other brands should be produced at the plant. TATNEFT, under the terms of the transaction, cannot use the Nokian name.

TATNEFT already has experience in the production of automotive tires. She owns Kama Tyres and Viatti. According to Kommersant, these wheels were previously supplied to 48 countries, with 35 countries belonging to foreign countries. Among the partners of Russian manufacturers are companies from Israel, Laos, Sweden, etc. The Nokian plant near St. Petersburg will allow the company to expand its business and find new sales markets.^[1]

2022

Losses due to reduced activity in Russia calculated

The total losses of Finnish companies, whose shares are traded on the stock exchange in Helsinki, due to the reduction or closure of business in the Russian Federation against the background of the Russian special operation in Ukraine in 2022 amounted to about 4 billion euros. Fortum, YIT, Nokian Tyres and Finnair lost a lot of all the money. Such data in early March 2023 cited the newspaper Helsingin Sanomat. Read more here.

Plan for the resumption of production in Russia by the new owner

The work of the former Nokian Tyres plant (Nokian Tyers) on the production of automotive tires in the Leningrad Region will resume in the second quarter of 2023 with a new owner (Tatneft), the regional governor Alexander Drozdenko said on December 13, 2022.

Sale of TATNEFT's Russian business for 400 million euros

On October 28, 2022, Nokian Tyres announced the sale of Russian the business. Tatneft"" The transaction value is about 400 million euros. The final purchase price is influenced, among other things, by the adjustment of net cash and working capital, as well as changes in the exchange rate, the Finnish the car tire company said.

The agreement must be approved by Russian regulators. After the sale of enterprises, the Finnish company will stop all types of operations in Russia. The personnel of the Russian division will transfer to the new owner. Nokian Tyres predicts that the cessation of work in the Russian Federation will negatively affect product sales in Central Europe in the next 2-3 years.

Nokian Tyres announced the sale of TATNEFT's Russian business

At the end of August 2022, Kommersant wrote that the manufacturer was looking for buyers for its plant in Vsevolozhsk, Leningrad Region. It produced 16 million tires a year, 60% of the products accounted for exports. Among the possible candidates, the publication named TATNEFT and AEON owner Roman Trotsenko.

Unlike other manufacturers, Nokian worked for secondary equipment, that is, it did not supply tires to car factories and therefore did not suffer from their almost complete shutdown in the spring. Nokian said that due to the impossibility of exporting tires to EU countries after July 10, 2022 (in connection with the fifth package of sanctions), production at the Russian plant will decrease significantly. In 2022, Nokian, according to reports, increased production at sites in Finland and the United States. In January - June, 73% of the total production of Nokian tires for passenger cars was produced in the Russian Federation, and in 2021 Russia accounted for 20% of brand sales and 80% of production. Nokian Tyres estimated the impairment of Russian assets in the second quarter of 2022 at about €300^[2]

Plan to leave Russia amid conflict in Ukraine

In June 2022, amid the conflict in Ukraine, Nokian Tires announced a decision to leave the Russian market. In August 2022, it became known that Nokian Tyres is looking for buyers for its plant in the Leningrad Region. By the beginning of September, potential buyers must provide binding offers, Kommersant found out. Among the applicants for the asset, estimated at €400 million, are structures close to Tatneft and businessman Roman Trotsenko.

2021:80% of Nokian Tyres passenger car tires produced in Russia

In 2021, about 80% of Nokian Tyres' passenger car tires were produced in Russia. More than 1,600 people work for the company in the country - Forbes.

2010: Tire exports from Russia to 20 countries

The Nokian Tires plant in Russia was established in 2005, seven production lines were launched, each of which produces one million tires per year. Tires produced at the Vsevolozhsk plant are exported to more than 20 countries. At the end of June 2010, 691 employees worked in the Russian division of the concern.

The Nokian Tyres plant in Russia is the main production site of the concern, produces about 85% of all passenger tires under the Nokian Tyres brand. Key markets for Nokian Tyres are regions that have increased tire requirements due to snowy winters, erratic temperatures, high rainfall, capricious and changeable weather.

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