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The former Nokian factory in Russia to produce tires under a new brand

  • August 3, 2022
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At the end of June, tire manufacturer Nokian Tires decided to initiate a “controlled exit” from the Russian market. And although the Finnish company is still considering how

At the end of June, tire manufacturer Nokian Tires decided to initiate a “controlled exit” from the Russian market. And although the Finnish company is still considering how it is more profitable to leave its assets on the territory of the Russian Federation, predictions have already appeared on the web regarding the possible prospects of a tire plant in Vsevolozhsk.

It should be recalled that the tire factory in Vsevolozhsk, in the Leningrad region, is a very large factory capable of producing more than 15 million car tires annually, and the rubber produced here was exported to many countries of the world. In particular, last year it was the plant in Vsevolozhsk that produced 80% of all Nokian products!

The management of the company itself has previously indicated that further work is impossible due to sanctions and that the loss of the Russian conveyor belt will be compensated by increasing volumes in other countries – in Finland and the United States. The financial losses will amount to approximately EUR 300 million.

At the same time, according to the governor of the Leningrad region, Alexander Drozdenko, after the owner’s departure, the plant will not only not close, but also switch to the production of tires under a new brand. However, management has a difficult task of finding new markets.

– The difficulty is that the label itself, which you are used to, most likely will not stay, another label will come, and it is important that it conquers sales markets, because tires were supplied to Europe, Canada and the US, and unfriendly countries banned the import of tires from Russia – quotes the words of Mr. Drozdenko TASS.

But the German company Continental, on the other hand, has resumed production at its tire factory, which is located near Kaluga. And although the reason for stopping the enterprise was political motives, the management of the German company decided not to abandon the asset.

It should be recalled that the tire factory in Vsevolozhsk, in the Leningrad region, is a very large factory capable of producing more than 15 million car tires annually, and the rubber produced here was exported to many countries of the world. In particular, last year it was the plant in Vsevolozhsk that produced 80% of all Nokian products!

The management of the company itself has previously indicated that further work is impossible due to sanctions and that the loss of the Russian conveyor belt will be compensated by increasing volumes in other countries – in Finland and the United States. The financial losses will amount to approximately EUR 300 million.

At the same time, according to the governor of the Leningrad region, Alexander Drozdenko, after the owner’s departure, the plant will not only not close, but also switch to the production of tires under a new brand. However, management has a difficult task of finding new markets.

– The difficulty is that the label itself, which you are used to, most likely will not stay, another label will come, and it is important that it conquers sales markets, because tires were supplied to Europe, Canada and the US, and unfriendly countries banned the import of tires from Russia – quotes the words of Mr. Drozdenko TASS.

But the German company Continental, on the other hand, has resumed production at its tire factory, which is located near Kaluga. And although the reason for stopping the enterprise was political motives, the management of the German company decided not to abandon the asset.

Source: Avto Vzglyad

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