Of the seven non-Russian tire companies with manufacturing operations in Russia, all have cut business activities there, and two—Michelin and Nokian Tyres P.L.C.—have declared at different points during the year that they are cutting ties completely.
Nokian was the first to announce the potential sale of its Russian facilities, saying last week it had agreed to sell its facility and assets to Russian energy and chemicals company P.J.S.C. Tatneft. The purchase price of the "debt-free and cash-free" sale is expected to be around $400 million in U.S. funds. Nokian said the final purchase price is affected by, among other things, net cash and working capital adjustments and changes in the exchange rate.
Nokian—which reports annual revenue from sales in Russia and Asia of around $378 million from the plant in Vsevolozhsk, Leningrad Oblast, Russia—was among the first tire makers to react to Russia's invasion of Ukraine, saying Feb. 25 it had moved production of some of its key lines out of its plant in Russia to plants in Finland and the U.S., while securing "transport capacity from Russia with existing and new service providers."
The plant in Vsevolzhsk is rated at close to 16 million tires per year.
Continental is altering production and business at both its tire and ContiTech operations in Russia.
Pirelli, Titan International and Yokohama Rubber Co. Ltd. have operations in Russia, along with some domestic tire makers.
In all, there are more than 45 total plants in Russia, Ukraine and the surrounding countries (Belarus, Bulgaria, Czech Republic, Hungary, Poland, Romania, Serbia, Slovak Republic and Ukraine.)
Major tire makers in these regions include: Bridgestone, Continental, Michelin, Apollo, Cooper Tire (now part of Goodyear), Hankook, Mitas, Nexen, Pirelli and Yokohama, according to Rubber News data.
European Rubber Journal contributed to this report.