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Pirelli puts brake on Russian activities

Published 03/17/2022, 03:09 PM
Updated 03/17/2022, 03:11 PM
© Reuters. Pirelli logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay

ROME (Reuters) - Italy's Pirelli said on Thursday it had halted investments in Russia, excluding those linked to security, and that the activity of its factories in the country would be curtailed.

"Pirelli is against this war... The investments in the local market, excluding those linked to security, have been halted," the tyremaker said in a statement with its annual financial results.

It added 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."

The company had said earlier this month that it did not plan to close factories as a result of Russia's invasion of Ukraine..

Pirelli manufactures around 10% of its global tyres output in two plants in Russia. The Russian market itself however accounts for only 3% of the group's total revenues and for 4% of its adjusted operating profit.

© Reuters. Pirelli logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay

It 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 added it would inform the market if its financial forecasts shift significantly from what it set out in February when it provided full year results and guidance just before the invasion of Ukraine began.

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