In March 2024, the Court of Justice of the European Union’s General Court lifted some of the sanctions imposed on Belshina in December 2021. Journalists from the Belarusian Investigative Center (BIC) consider this decision a mistake and have published their investigation into the tyre maker’s activities.
On 30 October, approximately a month after gaining a new owner, Russian tyre maker JSC Cordiant found itself on a list of US sanctions affecting a total of 275 individuals and entities said to be “involved in supplying Russia with advanced technology and equipment that it desperately needs to support its war machine.”
Last month we reported on what Ukrainian government agency the National Agency on Corruption Prevention (NACP) had to say about aircraft tyres entering Russia, but imports are by no means restricted to this product segment. According to research conducted by Russia’s largest non-governmental leasing company, two of the three tyre brands that corporate and fleet users most favour are products no longer officially sold within the country.
Tyre maker Cordiant has signed a letter of intent with major Russian polymer and rubber producer Sibur to replace natural rubber with synthetic isoprene rubber in the formulations of various types of tyres. Sibur explains that this joint initiative aims to develop the “technological sovereignty” in Russia’s transport industry by substituting imported natural rubber from Asia-Pacific countries.
The Court of Justice of the European Union’s General Court has lifted sanctions against Belarusian tyre maker Belshina (Belshyna AAT). Last week, the General Court annulled the Council of the European Union’s sanctions and ordered the Council to pay for court costs.
Russian motorists can still purchase Nokian tyres, but the brand’s days are numbered in this market. After energy company Tatneft acquired Nokian Tyres’ local assets, it renamed the operation Ikon Tyres and began producing tyres under the Ikon name in June 2023. Ikon Tyres says the process of updating tyre sidewall moulds has taken several months, but it started the volume production of rebranded summer tyres in December. This means that all products that dealers sell from Spring 2024 will carry the Ikon name instead of Nokian.
A total of 35.1 million tyres for all powered applications were sold in Russia in 2022, reports daily newspaper Kommersant. This figure represents a year-on-year decrease of 14.9% that disproportionately weighed upon the premium tyre segment. Tyre makers based within the country produced 42.7 million tyres within the year.
Titan International, Inc. has reported record turnover and profitability during the 2022 financial year. While the US-based manufacturer of OTR tyres and wheels increased its net sales by 21.9% to US$2.2 billion, income from operations jumped by more than 141% to $205.8, almost doubling the return on sales to 9.5%.
German rubber industry association wdk is “sounding the alarm” as massive increases in the cost of energy, raw materials and logistics take their toll upon companies within the industry, draining their liquidity and straining earnings. The wdk warns of impending insolvencies, a concretisation of relocation plans and job cuts.
The latest EU sanctions against Russia will seriously affect Nokian Tyres and its business in Europe. The tyre maker says the sanctions will have a “significant impact” on its ability to manufacture tyres in Russia, which will reduce its ability to sell tyres in the EU, and within Central Europe in particular.
Following Trelleborg Group’s confirmation that it cancelled plans to invest in new manufacturing facilities in Russia following Russia’s invasion of Ukraine at the end of February, Yale School of Management has upgraded the Swedish-based rubber products specialist business from grade “F” to “B”.
Pirelli has stopped investment in the Russian market. At the same time, Pirelli is phasing down production at its two Russian tyre plants – Kirov and Voronezh. Writing in a statement published on 18 March 2022, executives confirmed that they have stopped investment in Russia “excluding those linked to security”. At the same time, Pirelli executives said: “activities of the factories in Russia will be progressively limited to those needed to guarantee the financing of salaries and social services for employees.”
As part of our ongoing coverage of the impact of the Russia-Ukraine war, Tyres & Accessories asked one of the world’s leading tyremakers, Bridgestone, a series of questions about its operations in Russia and the Ukraine.
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.”
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