Economic|The Russian attack
The company has no plans to reduce or discontinue production in Russia. Retail investors and financial professionals have been vigorously discussing the company’s policies on discussion boards and social media.
Nokia tireswhich has a large car tire factory in Russia, told analysts last week that it would continue to operate in Russia as before.
In addition, the company estimates that it will benefit from the fact that many Western competitors have announced their withdrawal from the market.
A recording of the call is not available on the company’s website, but its contents have been reported in analyst reports and on social media.
Of the tire manufacturers, at least Bridgestone, Continental and Michelin have said they will suspend their business in Russia, at least temporarily, after Russia invaded Ukraine three weeks ago.
For example investment services company Inderes in the forum the company’s policy is being vigorously discussed. According to a report by Inderes analyst on the call, Nokian Tires estimates that the withdrawal of competitors and the acceleration of demand in Russia will lead to a situation where demand exceeds supply.
Analyst Joonas Korkiakoski refer to the issue of the analyst call in its report thus.
“Management estimates that the temporary withdrawal of competitors, combined with the expected development of demand, will lead to a situation where demand exceeds supply.”
According to the report, the company does not believe that the Russian attack would affect sales of tires manufactured in Russia, for example in Finland.
“In our opinion, the company has had a lot of discussions with its distributors about, among other things, the reputational damage that may be associated with the sale of tires manufactured in Russia but designed in Finland and supplied by a Finnish company. The discussions seem to have gone quite well and no major concerns have emerged. Reflecting this, we believe that the number of distributors who categorically refuse tires made in Russia is marginal, ”Korkiakoski continues.
Also the OP Bank Group’s President and CEO Olavi Kurola commented on Twitter.
Nokian Tires’ share price fell very sharply after Russia invaded Ukraine, but the share has since recovered.
The largest shareholder in Nokian Tires is the Finnish state Solidium with a share of 9.40 percent. The next largest owners are occupational pension companies.
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