Russia
Despite the war in neighbouring Ukraine and the resulting sanctions imposed on Russia by the international community, as of 2 March 2022, company representatives told Tyres & Accessories the Yokohama’s Russian tyre manufacturing operation in Lipetsk, 500 kilometres south of Moscow, is running as normal.
In light of the ongoing war in Ukraine and the resultant sanctions against Russia, Tyres & Accessories asked the well-known automotive supplier and premium tyre manufacturer for its perspective on the situation. In response, an official statement from the Continental Tire Group Sector explained: “We are following the war against the Ukraine with great concern. Our thoughts are with the people affected and we hope that the combat operations end as quickly as possible.”
OTR tyre specialist Titan International, which owns the Voltyre-Prom tyre manufacturing operation in Russia, is bracing itself for “the potential impact of bans, sanction programs, and boycotts…” due to Russia’s recent invasion of Ukraine. However, deep in the detail of Titan’s strong fourth-quarter 2021 reports which were published today (3 March 2022), executives affirm that “the impact of the military conflict between Russia and Ukraine has not had a significant impact on global operations”.
Nynas has halted the purchase of feedstock of Russian origin. Sales to customers in Russia and Belarus have also been stopped. According to the petrochemical company which supplies tyre industry, the Russian invasion of Ukraine and “its tragic consequences throughout the region” prompted Nynas to reconsider its supplies from Russia and also sales to the country.
Koelnmesse, the organisers of The Tire Cologne exhibitiom, are suspending cooperation with Russian companies in support of the people of Ukraine. Writing in statement published online on 1 March 2022, Gerald Baese, CEO of Koelnmesse GmbH said:
Goodyear has accounted for all its associates in Ukraine and “continues to monitor the situation and support associates and customers”. Writing in a statement sent in answer to Tyres & Accessories questions on the matter, a company spokesperson outlined Goodyear’s current position:
While announcing its latest financial results, Pirelli has shared details of the steps it has taken to mitigate the impact of the “Russia-Ukraine crisis”. Writing on 23 February, executives explained that Pirelli has conducted an initial analysis of the situation and steps required.
The tragedy of war always has repercussions. Russia’s invasion of Ukraine at the end of February is no exception. With reports of thousands of deaths and hundreds of thousands of people already displaced, the human cost is incalculable. While blood is being spilt in Ukraine at a horrifying rate, this war is being fought on at least three fronts: military, electronic and financial. The human cost of the military dimension is beyond the scope of this publication. Likewise, cyber-warfare is probably a bridge too far (unless we are talking about vehicle cyber security, which is of increasing importance right down to the aftermarket garage level – see pages 16 to 17 of our forthcoming March edition for more on this). The economic cost of the war in Ukraine, however, will have an inevitable impact on European tyre production directly due to conflict and indirectly due to logistics and the impact of sanctions.
In light of the Russia-Ukraine war, Nokian has established a crisis management team to safeguard staff and production at its Vsevolozhsk, Saint Petersburg, Russia tyre factory and is relocating the production of certain tyre lines to Finland and the US. Nokian employs 1,600 people in Russia. Net sales in the company’s Russia & Asia business unit amounted to 336 million euros in 2021.
As the war between Russia and Ukraine entered its fifth day on 28 February, and as talks between the Russian and Ukrainian governments were set to take place, local news reports suggested that troops from nearby Belarus were set to enter combat. The significance for the tyre industry is that, as well as obvious and tragic implications for Ukraine and its domestic tyre business, there is now evidence that the conflict’s ramifications are reaching neighbouring countries. But where does Belarussia’s leading tyre manufacturer, Belshina, fit into this picture?
Nokian has dropped its 2022 financial guidance as a result of the invasion of Ukraine by Russia where Nokian runs a tyre manufacturing plant in Vsevolozhsk, near Saint Petersburg.
Russian vehicle manufacturer GAZ has selected Kama Tyres to supply tyres for the new range of buses built by its PAZ (Pavlovo Bus Factory) subsidiary. It will deliver Kama NF 202 steer axle and NR 201 drive axle tyres in size 285/70R19.5.
Russia’s Tatneft Group is gearing up to offer ATV tyres under its Kama tyre brand. The company announced this week that its Nizhnekamskshina factory has commenced production of an experimental size 25×8-12 tyre, the Kama Quadro ATM, and intends to begin volume manufacture before the end of this year.
Tech Europe introduced Dinara Izmaylova as the newest member of its team on 5 October. Based in company’s Rovereto, Italy office, Izmaylova joins as a new sales area manager covering Russia, Scandinavia, Finland and the Middle East, as well as the Baltic and CIS regions.
Taif Group, the world’s largest producer of isoprene and the Russian Federation’s largest rubber producer, has entered into an agreement with Russian integrated petrochemical company Sibur that finalises the creation of a combined entity that will leverage the facilities of Sibur Holding and create the largest petrochemical company in Russia and one of the biggest in the world.
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Chickenonline; Pixabay
Igorn; Pixabay
Voltyre-Prom; Titan International
Nynas
Pirelli
Jorono; Pixabay
Nokian
Belarussian Ministry for Finance
Nokian Tyres
Tech Europe