Pirelli has confirmed that they have halted operations in Russia with a statement on how it will handle operations for its Kirov and Voronezh factories for the foreseeable future, with the news reported by Reuters.
Change of Strategy from Pirelli as Russia-Ukraine Conflict Shows no End in Sight
Originally Pirelli said that it wouldn’t close its factories as a result of the war. Now, however, Pirelli has set up a committee to monitor the development of the Russia-Ukraine crisis, "for which mitigation actions and a contingency plan have already been activated".
Pirelli produces around 10% of its global tyres in its two Russian plants. In terms of financial benefits, Russia makes up 3% of Pirelli's total revenue or 4% of its adjusted operating profit.
In an unambiguous statement given on the day of its annual financial results, which took place on 17th March, the manufacturer said, "Pirelli is against this war (...) the investments in the local market, excluding those linked to security, have been halted."
The manufacturer, based in Milan, also added, "Activities for the factories in Russia will be progressively limited to those needed to guarantee the financing of salaries and social services for employees."
With the policy change, Pirelli added that it would inform the market if its financial forecast would be significantly different from its February projection. It's worth mentioning that its projection was made before the invasion of Ukraine took place.