The war in Ukraine eventually forced Nokian to agree to sell its Russian operations Vsevolozhsk, Leningrad Oblast,Russia, to Russian energy and chemicals company P.J.S.C. Tatneft, completing the Finnish tire maker's previously announced exit from the country.
The purchase price of the "debt free and cash free" sale is expected to be around $400 million Euros, or roughly $399 million in U.S. funds. Nokian said the final purchase price is affected by, among other things, net cash and working capital adjustments and changes in the exchange rate.
Nokian Tyres previously moved production of some of its key lines out of its plant in Russia to plants in Finland and the U.S., while securing "transport capacity from Russia with existing and new service providers."
With some of that production shifted to North America, Nokian Tyres said its Dayton factory set production records frequently, completing its best year on record. The company said domestic production "offers a buffer against global uncertainty, especially when it comes to some of the company's most popular products in North America."
The factory manufactures all-season and all-weather tires, according to Heinonen. "The war in Ukraine is not impacting those at all; availability has been as planned. In 2023 we will get even more products from Dayton."
The company said that will result in expanded volume of tires from lines including the Nokian Tyres One and WR G4. Nokian also plans to manufacture select light truck tire lines in Dayton; winter tires will be sourced from Finland.