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Ukraine war continues putting tyre production under pressure

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At the start of the year this column predicted a positive 2022 for the tyre business on the basis that we are better prepared for the unknown because of the adaptions made during the last few pandemic years. I still believe that. But my thesis is being tested by the implications of the now month-long war in Ukraine. All our expectations are being tested. For example, never before have I received an email which switches from normal editorial matters to “our country has been invaded” from one line to the next.

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Related news:

  1. Nokian moves selected tyre production out of Russia
  2. How will war in Ukraine impact European tyre production?
  3. Nokian tyres implements Ukraine contingency plans, donates to UNICEF
  4. Ukraine war’s impact on global tyre-makers acute for Nokian, manageable for others
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Yokohama stops tyre production in Russia, donates over $400,000 to relief efforts

CNES/Airbus; Maxar Technologies

Japanese tyre manufacturer Yokohama is stopping production at its L.L.C. Yokohama R.P.Z. passenger car tyre factory in Lipetsk, Russia. Yokohama said it will “gradually stop production” in Russia “due to the current problem of raw material procurement”. The company will also donate more than $400,000 to humanitarian relief efforts.

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Related news:

  1. Nokian moves selected tyre production out of Russia
  2. How will war in Ukraine impact European tyre production?
  3. Yokohama: No change at Russia tyre factory
  4. Ukraine war’s impact on global tyre-makers acute for Nokian, manageable for others
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Bekaert’s Russia tyre cord plant receives strong domestic demand

CNES/Airbus; Maxar Technologies

Bekaert’s newly-expanded Russian tyre cord production operation is receiving strong demand – but solely from local producers. Speaking in the company’s full-year 2021 conference call on 25 February 2022, NV Bekaert SA CEO Oswald Schmid told investors that “all the business we do is for Russian customers. There’s no export outside.” At 12 years old, Bekaert’s tyre cord-focused Lipetsk plant is one of the firm’s newer plants. It employs about 500 people.

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  1. Planned Bekaert Facility to Meet Russian Tyremakers’ Needs
  2. European Commission approves Bekaert acquisition of Pirelli steel cord business
  3. Continental: Russian tyre raw material supply will ‘gradually deteriorate’
  4. Bridgestone: No facilities or employees in Ukraine
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Nokian Tyres staying in Russia

Nokian Tyres has explained the decision to retain its manufacturing operation in Russia, a facility that reportedly produced 82 per cent of Nokian’s passenger and light commercial vehicle tyres last year. The Finnish tyre maker states that by continuing to operate the passenger car tyre factory in Vsevolozhsk, Russia it wants to “make sure that the factory is operated and controlled by Nokian Tyres also in the future.”

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  1. Nokian Tyres adjusting output in Russia, freezes hiring at new USA plant
  2. Nokian Tyres: US factory launch team training in Europe
  3. Nokian moves selected tyre production out of Russia
  4. Nokian tyres implements Ukraine contingency plans, donates to UNICEF
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Ukraine war’s impact on global tyre-makers acute for Nokian, manageable for others

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Nokian Tyres

The first month of Russia’s invasion of Ukraine has already revealed several consequences for mobility and the global tyre industry, as Tyrepress’s continuing coverage of the situation has shown. The resultant sanctions imposed on Russia by an international alliance and the response of multinational companies, at least 450 of which had scaled back their business in the country as of the publication of this article, will send reverberations around global economies. The tyre industry faces impacts on several fronts – higher fuel prices and further interruption to logistics chains and materials supply will have knock-on consequences for tyre sales that will unfold over the coming months. At nearly a month after the conflict began, tyre business analyst Astutus Research examines the immediate consequences for tyre manufacturing in Russia, as well as its neighbours Ukraine and Belarus. This analysis looks at the impact of events on the global manufacturers whose plants were collectively responsible for around 70 per cent of Russia’s passenger car and light truck (PCLT) output. For more Astutus Research analysis and forecasts for the global tyre business, see the report series ‘Beyond Covid-19’ in Tyrepress’s Report Shop.

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  1. How will war in Ukraine impact European tyre production?
  2. Sanction-hit tyremaker Belshina patriotic amid war in Ukraine
  3. Nokian tyres implements Ukraine contingency plans, donates to UNICEF
  4. Enviro reports ‘Sharp increase in interest’ in rCB due to war in Ukraine
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Pirelli stops new investment in Russia, puts brakes on tyre manufacturing in Russia

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Pirelli

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.”

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  1. Continental: Russian tyre raw material supply will ‘gradually deteriorate’
  2. How will war in Ukraine impact European tyre production?
  3. Yokohama: No change at Russia tyre factory
  4. Bridgestone: No facilities or employees in Ukraine
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Enviro reports ‘Sharp increase in interest’ in rCB due to war in Ukraine

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Enviro

Tyre recycling and product recovery specialists Scandinavian Enviro Systems (Enviro) is has noted “a sharp increase of interest in purchasing the carbon black and oil that Enviro recovers from end-of-life tyres” since the Russian invasion of Ukraine on 24 February 2022. Interest has been observed “among old and new customers”, but the company has not commented on what this means in terms of specific orders.

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  1. Enviro: Improved tyre pyrolysis market will help revenues
  2. Co-owned recycling plants: Enviro setting up USA holding company
  3. Corporate bond to finance Environ’s ownership of recycling plants
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Carbon black and gas prices push tyre manufacturer supply situation to a head

Russia’s attack on Ukraine is now impacting Europe’s leading economies and specifically Germany. For those producing tyres, hoses, seals or health protection products, the situation is particularly series due to the duel effects of tight carbon black supplies and rising energy and specifically gas costs. “Carbon black is an indispensable material for production and so far more than a third comes from Russia,” explained Boris Engelhardt, general manager of the German Rubber Industry Association (WdK) in Frankfurt am Main, according to our sister publication reifenpresse.de.

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  1. Turkey leads strong Eastern Europe heavy trailer demand
  2. SABIC introduces new synthetic rubbers
  3. Omsk carbon black production to start in 2018
  4. Klean CEO speaking on recovered carbon black at European Carbon Black Summit
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Michelin halts Russian tyre manufacturing and exports to Russia

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Michelin

The Michelin Group has announced that is suspending all its “industrial activity” in Russia as well as suspending its exports to Russia.

Michelin’s Davydovo tyre production plant near Moscow employs about 750 people and manufactures passenger car tyres and retreaded truck tyres. According to a statement from Michelin released on 15 March 2022, the Davydovo site’s production is “mainly for the local market”.

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  2. Sibur-Russian Tyres Looks for PCR Production Partner
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  4. Nokian tyres implements Ukraine contingency plans, donates to UNICEF
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Bridgestone suspending Russia manufacturing activities, imports

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As of Friday 18 March 2022, Bridgestone Corporation will suspend its manufacturing activities in Russia until further notice. This production stop will take place after “the necessary preparations” are made. The company has also decided to freeze any new investments and suspend all exports to Russia with immediate effect.

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  1. Bridgestone pausing production at 11 Japanese facilities
  2. Continental halts tyre exports from Russian plant
  3. Bridgestone: No facilities or employees in Ukraine
  4. Canadian Tire halts Helly Hansen operations in Russia, commits $700,000 to aid
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Canadian Tire halts Helly Hansen operations in Russia, commits $700,000 to aid

Canadian Tire Corporation (CTC) announced it will temporarily pause its Helly Hansen operations in Russia, which include its retail stores, eCommerce site and product shipments in a 4 March 2022 statement, which said: “The conflict between Russia and Ukraine is tragic and deeply concerning and CTC’s priority will continue to be protecting the safety and well-being of its employees. During this temporary pause in operations, store employees will continue to be paid and supported and the company will continue to honour its commercial obligations.”

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  1. Pirelli gives 500,000 euros to support Ukranian refugees
  2. Goodyear: We have accounted for all our associates
  3. Tire Cologne suspends cooperation with Russian companies
  4. Bridgestone: No facilities or employees in Ukraine
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Nokian tyres implements Ukraine contingency plans, donates to UNICEF

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Nokian Tyres

The crisis in Ukraine has impacted upon Nokian Tyres’ business in multiple ways, and the company has now activated contingency plans to “mitigate the financial and operational impacts” upon business. At the same time, it has donated 100,000 euros to UNICEF to help children in the war zone.

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  1. Nokian moves selected tyre production out of Russia
  2. Nokian Reports “Satisfactory Results” for 2009
  3. Walkout Planned at Nokian Tyres Facility
  4. Russia the key driver of Nokian’s growth
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Continental halts tyre exports from Russian plant

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The conflict in Ukraine has impacted upon operations at Continental’s tyre factory in Kaluga, Russia. A spokesman confirmed to Tyrepress.com that the company has “suspended tyre production intended for export at our plant in Kaluga until further notice.”

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  1. Output at Continental’s Kaluga plant exceeds 10 million tyres
  2. Continental: Russian tyre raw material supply will ‘gradually deteriorate’
  3. Volkswagen halts Russian production, imports
  4. How will war in Ukraine impact European tyre production?
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Bridgestone: No facilities or employees in Ukraine

Google; CNES, Airbus, Maxar Technologies

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.

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Related news:

  1. How will war in Ukraine impact European tyre production?
  2. Yokohama: No change at Russia tyre factory
  3. Nokian Tyres drops 2022 guidance due to Russian invasion
  4. Continental: Russian tyre raw material supply will ‘gradually deteriorate’
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Are tyre issues hampering Russian military progress in Ukraine?

Tyres and poor vehicle maintenance could be contributing to the stalling Russian military effort north of Kyiv. The UK defence ministry has reported that Russia’s 40-mile military convoy in northern Ukraine has made no significant progress for several days, stalled on the roads leading into the Ukranian capital, Kyiv, and hampered by equipment malfunctions and improvised roadblocks. So why does the Russian military not simply forge off-road routes to aid progress? According to military history blogger and retired US Department of Defense civil servant Trent Telenko, the combination of Ukraine’s mud season, or “Rasputitsa” and the poor state of Russian military vehicles’ tyres make such moves extremely difficult to make.

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Related news:

  1. Nokian Tyres drops 2022 guidance due to Russian invasion
  2. How will war in Ukraine impact European tyre production?
  3. Yokohama: No change at Russia tyre factory
  4. Pirelli gives 500,000 euros to support Ukranian refugees
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