Finnish tire manufacturer Nokian Tires said on Tuesday that it plans to increase production at its domestic and US plants, but will continue to produce passenger car tires at its plant in Russia.
Nokia faced a public backlash after saying it did not intend to suspend operations in Russia, as many other international companies have done in response to the deadly attack on the country and the attack on Ukraine.
Many of the company’s competitors, including Continental, Michelin and Bridgestone, have announced a temporary suspension in Russia.
While Nokia’s decision appears to have damaged its public image, it also weakened the value of its shares in the stock market, which fell nearly 14 percent over the past weekend.
The company announced on Tuesday that it would increase production at its production facilities in Finland and the United States, but still planned to continue operations at the Russian plant, but the company said it would not invest more in Russian production.
"By continuing to operate the passenger car tire plant in Russia, we want to ensure that the plant will continue to be operated and monitored by Nokian Tires. We no longer invest in Russian production," was read in the company bulletin.
80% of Nokian car tires are made in Russia
About 80 percent of Nokian’s passenger car tires come from Russia, but the situation is changing, the company says.
"According to the plan, all future tires sold in the Nordic countries will be manufactured in Finland and all tires sold in North America in Dayton, Ohio, USA and Nokia in Finland. The company is actively seeking additional capacity and is striving to diversify geographically in its production operations," the statement said.
The company said it did not want to speculate on how the situation would develop.
"We will notify Nokian Tires of any material direct effects, if necessary and in a timely manner. We will continue to assess the situation and are ready to respond quickly if necessary." the company said.
Nokia’s press release on Tuesday began with a statement that the company has been monitoring the situation in Ukraine "with great sorrow," and that it hoped a "a rapid diplomatic solution to this tragedy."
It said the company was in daily contact with about 20 members of its team in Ukraine.
"We have helped and continue to help our employees and their families stay safe. More than half of our Ukrainian workers are men and cannot leave the country, but we will help them in every way possible in the current situation. In addition, Nokian Tires has made a donation to Unicef to help children in the war zone in Ukraine," the opinion read.
In a separate release on March 8, the company said it had donated 100,000 euros to Unicef for the benefit of Ukrainian children.
Source: The Nordic Page