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.”
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.
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?
Nynas has exited company reorganisation after Swedish courts confirmed the process is now complete following a creditors meeting. The court’s decision is effective 21 December 2020. After this, Nynas will no longer be limited by reorganisation regulations.
Having exited US sanctions in May 2020, Nynas – which supplies oils to the tyre and rubber industries – has continued an eventful year by announcing significant ownership changes that put Bitumina in a commanding position amongst its shareholders.
The US Treasury Department’s Office of Foreign Asset Control (OFAC) has confirmed that Nynas is no longer being blocked pursuant to the Venezuela Sanctions Regulations. As a result of a corporate restructuring of the ownership of Nynas AB, sanctions are lifted.
Russia’s Rosneft, indirect 13 per cent shareholder in Italian tyre maker Pirelli, has commented on the decision by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) to include it on the new sectoral sanctions list. The oil company was one of four energy sector companies added to the list on 16 July 2014; the sanctions were announced in response to unrest in Ukraine but were put in place before the crash of Malaysian Airlines MH17. Under the terms of the sanctions, US citizens can not undertake certain dealings with Rosneft and the other firms, and they will not be able to obtain medium or long-term lending from the US.
Pirelli
Google; CNES, Airbus, Maxar Technologies
Chickenonline; Pixabay
Igorn; Pixabay
Voltyre-Prom; Titan International
Nynas
Belarussian Ministry for Finance
Nokian Tyres
Nynas
Nynas
Nynas