French tire company Michelin announced via a press release on 28 June that it had decided to transfer its activities in Russia to local management by the end of 2022 in response to technical difficulties in resuming production. According to the press release, supply issues and issues related to general uncertainty have driven the company’s decision to transfer control of its administrative, sales, and industrial operations to the current local management that would operate the Russian site ...

On 24 February 2022, Russian forces initiated military operations in neighboring Ukraine, provoking a massive international geopolitical response aimed at financially isolating the country’s economy from the rest of the world. Western governments have since initiated wide-ranging sanctions that have cut off the country’s supply chains while simultaneously causing a large-scale exodus of international businesses from the country. While negotiations calling for a diplomatic solution to the cri...

Continental has resumed production of passenger car tires at its Kaluga plant in Russia to protect local workers who could otherwise face criminal charges, Frankfurter Allgemeine Zeitung reported on 19 March. Employees and managers in Russia face severe criminal consequences should they refrain from serving local demand. The company employs around 1,300 people at the Kaluga site and resuming tire production at the Russian plant is not a profit driven decision, report added. Significance: L...

Finnish tire manufacturer Nokian Tyres released a press statement on 11 April discussing new impacts to its tire business after the European Union, on 8 April, imposed a fifth package of economic and individual sanctions against Russia in view of its aggression against Ukraine. According to Nokian’s press release, the new sanctions that affect its business are: Sanctions prohibiting the import, purchase, and transfer of tires from Russia to Europe. Sanctions prohibiting European com...

Finnish tire manufacturer Nokian Tyres announced via press release on 30 March that it had started to expedite its plans to invest in new production capacity in Europe in response to the ongoing conflict in the Ukraine region. According to the press release, the decision to expedite plans was driven by the high uncertainty the company was facing with regards to its operational environment and manufacturing capacity. The company further stated that because of the expedited capacity expansio...

The ongoing conflict in Ukraine has disrupted production at several supplier facilities, forcing them to announce production suspensions or shifts of production operations to other sites. Tier-1 suppliers such as Leoni, Gentherm, Aptiv, Kostal, Kroschu, Fujikura, Sumitomo Electric, Nexans, Yazaki, and Prettl have plants in Ukraine producing primarily wiring harnesses, of which Ukraine is a major regional hub for European OEMs. Several subsuppliers also operate in the country, supplying to B...

Italian tire manufacturer Pirelli announced via its 2021 financial results statement on 17 March its business operational response to the ongoing conflict in Ukraine. According to the report, the tire company has halted all investments in the Russian local market (excluding those linked to security) as a response to actions taken by Russian forces in Ukraine. The company also stated that will be progressively limiting activities at its factories in Russia to levels needed to ensure the f...

French carmaker Renault Group said on 23 March 2022 that its Board of Directors met on 23 March and have approved suspension of all activities in its manufacturing plant in Moscow with immediate effect. The decision comes after Ukrainian president Volodymyr Zelenskyy called out Renault during his 20-minute speech to the French parliament earlier in the week. Renault Group also said that the company management is assessing its stake in Russia’s largest carmaker Avtovaz in the wake of current...

Finnish tire manufacturer Nokian Tyres announced via press release on 22 March an update to its operational strategy response to the ongoing crisis in the Ukraine region. According to the press release, the company is currently carrying out the following actions: The company will continue to operate the passenger car tire factory in Vsevolozhsk, Russia, to make sure that the factory is operated and controlled by Nokian Tyres also in the future. The company will no longer invest in&nbs...

Japanese tire manufacturer Yokohama Tyres is halting production at its passenger tire plant in Kazinka Village, Gryazy District, Lipetsk region, Russia, run by its subsidiary, L.L.C. Yokohama R.P.Z., according to a statement provided by the company to Tire Business on 18 March. According to the statement, Yokohama stated it was sincerely hoping that the situation in Russia and Ukraine would be resolved as soon as possible, and that peace and the safety of all people will be secured. Signif...

American global specialty chemicals and performance materials company Cabot Corporation announced via press release on 15 March that it will be increasing prices globally for the Carbon Black products sold by its Specialty Carbons business. According to the company, the increase in prices is necessitated by the significant and rapid rise in prime raw material costs, including that of oil and natural gas. The company stated that the increases, effective for all shipments on or after 15 Apri...

French tire manufacturer Michelin announced via press release on 15 March that it would be suspending its industrial activity in Russia as well as exportations to Russia from other countries. According to the press release, the company’s Davydovo plant in Russia that manufactures passenger car tires and retreaded truck tires mainly for the domestic market will stop operations in response to the continued crisis in the Ukrainian region. The company stated that it will continue supporting ...

Japanese multinational auto parts manufacturer Bridgestone Corporation announced via press release on 14 March that it would be suspending local manufacturing in and exports to Russia in response to the ongoing conflict in the Ukrainian region. According to the press release, the company, as part of its new corporate commitment “Bridgestone E8 Commitment”, will suspend all operations in its car tire plant located in Ulyanovsk, Russia, from 18 March, after communicating with its employees ...

In an interview with The Financial Times on 10 March 2022, Volkswagen (VW) chief executive officer Herbert Diess has warned that a prolonged conflict between Russia and Ukraine would result in severe economic damage, worse than the COVID-19 pandemic, especially for the European countries. The VW boss also warned that the disruption of global supply chains could lead to huge price increases along with the scarcity of energy and inflation. In his interview with FT, Diess sai...

South Korean carmaker Hyundai Motor has canceled its plans to resume operations at its factory in Russia owing to persisting supply disruptions amid the ongoing Russia-Ukraine conflict, according to a news report filed by Yonhap News on 8 March 2022. The news agency said that the vehicle manufacturer had earlier planned to resume the temporarily suspended operations at its factory in St Petersburg on Wednesday but later called up the resumption owing to the persisting supply shortag...

Russia’s biggest carmaker Avtovaz plans to partially resume operations at its Togliatti and Izhevsk manufacturing facilities from 16 March despite a persistent shortage of components, according to a Reuters report on 10 March 2022. Citing the carmaker, the report stated that Avtovaz plans to resume operations as it wants to protect the incomes of its staff in Russia amid the ongoing conflict with Ukraine. Notably, Avtovaz, which is controlled by French carmaker Renault, had stoppe...

Swedish manufacturer of specialty naphthenic oils and bitumen products announced via press release on 2 March that the company had decided to halt purchase of feedstock of Russian origin from western non-Russian suppliers in response to the ongoing Russia-Ukraine conflict. According to the press release, in addition to this change to its purchasing strategy, the company had stopped sales to its customers in Russia and Belarus until further notice. Bo Askvik, president and CEO, Ny...

Continental has halted production at its factory in Kaluga, Russia, and is working on identifying other facilities where it can increase production to compensate its loss from the Russian plant, according to a press release published by Reuters on 9 March. The Kaluga plant produces and manufactures plastic products, tires, and rubber. The products from the Kaluga plant are primarily catered to the neighboring states and Continental has ceased all imports and exports from Russia until furthe...

Finnish tire manufacturer Nokian Tyres announced via press release on 8 March that the company is activating its contingency plans to mitigate financial and operational impacts to its business in response to the Russia-Ukraine crisis. According to the press release, the contingency plans include: Shipping tires closer to customers Securing the raw material supply to its factories Transferring production of selected key product lines from Russia to Finland and the US Securing trans...

Spanish automotive supplier Gestamp announced that it would be halting production at its four Russian plants in response to supply-chain constraints caused by geopolitical tensions in the Russia-Ukraine region, according to a press release published by the company on 7 March. The company stated that it was facing shortage of certain components because of the crisis and thereby ceasing all operations. Significance: The Russia-Ukraine conflict has triggered a wave of international sanctions and...

The ongoing conflict in Ukraine has disrupted production at several supplier facilities, forcing them to announce temporary production suspensions or shifts of production operations to other sites, opening another front for carmakers scrambling to stabilize their production output in light of the ongoing semiconductor shortages. Tier-1 suppliers, such as Leoni, Gentherm, Aptiv, Kostal, Kroschu, Fujikura, Sumitomo Electric, Nexans, Yazaki, and Prettl, have plants in Ukraine producing primarily wi...

French tire manufacturer Michelin announced via press release on 3 February that it would be halting production at some of its European plants in response to supply-chain problems caused by geopolitical tensions in the Russia-Ukraine region. The company stated that it was facing logistical and transportation issues in supplying its plants and delivering products to its customers because of the crisis. To optimize its operations and adapt its flow management to the current situation, the compa...

Volvo Cars has suspended car shipments to Russia until further notice due to the ongoing geopolitical actions between Russia and Ukraine, according to a statement published by Reuters on 28 February. The Swedish automaker’s decision aligns with the potential risks associated with trade relations based on sanctions imposed against Russia, the statement added.    Significance: According to Reuters, Volvo becomes the first automaker to halt shipments as geopolitical tensions rise and...