On a Brake: Pirelli Halts Activities in Russia
Amid the ongoing war between Russia and Ukraine, Italian tire brand Pirelli announced that it will be halting investments in Russia.
According to a report from Reuters, Italian tire brand Pirelli announced on Thursday, March 17, that it has halted investments in Russia, with the exception of those linked to security. Likewise, it adds that the activity of its factories in the country will be curtailed.
“Pirelli is against this war,” the tiremaker said in a statement. “The investments in the local market, excluding those linked to security, have been halted.”
Taking a Brake?
Although the company said earlier this month that it did not plan to close its factories as a result of Russia’s invasion of Ukraine, it changed its tune this month with its announcement.
However, unlike the brands that exited Russia completely—some even closing their stores indefinitely, Pirelli expressed that “activities of the factories in Russia will be progressively limited to those needed to guarantee the financing of salaries and social services for employees.” Likewise, Pirelli added that it has set up a committee to monitor developments in the ongoing crisis—“for which mitigation actions and a contingency plan have already been activated.”
Pirelli manufactures around 10% of its global tires in Russia, but the Russian market itself accounts for only 3% of the group’s total revenues and for 4% of its adjusted operating profit.
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