MILAN, Italy — Pirelli & C. S.p.A. is throttling back its activities in Russia, amid the ongoing war in Ukraine and continued supply-chain disruptions in the region, and has set up a "crisis committee" to monitor ongoing developments there.
In a statement linked to the release of its fiscal 2021 financial results, Pirelli 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 in Russia."
In the statement, Pirelli added that "investments in the local market, excluding those linked to security, have been halted."
Pirelli said its crisis committee will monitor the development of the Russia-Ukraine crisis and the effectiveness of its mitigation actions and contingency planning.
Pirelli further stated that it was "against this war" noting that it is supporting the Ukrainian population with a donation of $550,000 and facilitating the collection of funds among employees.
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Pirelli operates two tire plants in in Russia, in Kirov in west-central Russia and Voronezh in eastern Russia just 200 miles from the Ukraine border.
The Kirov plant employs 1,600 and has a capacity to produce 6 million passenger car and light vehicle tires per year, according to Tire Business' Global Tire Report.
The plant in Voronezh employs 900 and has a nameplate capacity of 2.3 million passenger and light truck tires a year.
Pirelli acquired the plants in 2012 from Russian petrochemical company Sibur Holdings.in a joint venture initiative with Russian Technologies State Corp.
