NOKIA, Finland — Nokian Tyres P.L.C. continues to alter its global production and distribution while maintaining safety for its employees in Ukraine and Russia as the war in Ukraine enters its third week.
In a statement issued on its website, the Finnish tire maker said its operations in Russia continue to be "impacted by transportation capacity availability, and lead times to our customers have increased. The operations can be further impacted by raw-material supply."
Nokian said it has been able "to fulfill the customer orders despite the supply-chain challenges, and continue to do our best to serve our customers and to deliver as agreed with them."
Nokian earlier said it had moved production of some of its key lines out of its plant in Russia to its factories in Dayton, Tenn., and Nokia, Finland, in the wake of Russia's invasion of Ukraine on Feb. 24.
It plans to continue that course of action, according to its latest statement.
Nokian operates one plant in Russia, located in Vsevolozhsk, near St. Petersburg, with 1,600 employees. Nokian reports annual revenue from sales in Russia and Asia of around $378 million.
In its statement, Nokian said in lieu of the current sanctions, it is requiring customers and suppliers in Russia to change their bank. The company said delays are occurring in cross-border transactions, "and volume is small, as the currency trading is not working normally."
Nokian said its crisis management team meets daily in order to prepare for various scenarios, while monitoring the sanctions and any potential response to those sanctions.
"We have activated our contingency plans to mitigate the financial and operational impacts to our business," the company said.