Industry News

Nokian Tires: Signs Purchase Agreement for Recovered Carbon Black (rCB)  Link...

Nokian Tyres has made a long-term purchase agreement with the tire recycling joint venture (JV), Antin Infrastructure Partners and Scandinavian Enviro Systems. The JV's first plant based in Sweden is expected to be fully operational by 2025 with deliveries to Nokian Tyres beginning in 2026.

Nokian Tyres started to use recovered carbon black in a commercial product line in 2022. The long-term purchase agreement with a tire recycling joint venture enables its increased utilization in tires accelerating circularity and sustainability in the tire industry.

Nokian Tires: Breaks Ground on New Tire Factory in Romania  Link...

Nokian Tyres has broken ground on the company’s new passenger car tire factory in Oradea, Romania. The greenfield factory is being built in the North-West of Romania in the city of Oradea, an important regional and European hub of many transport routes. The annual capacity of the factory will be 6 million tires with expansion potential in the future. The factory will concentrate on the production of larger rim size passenger and SUV tires that will be primarily sold in the Central European market. The first tires are estimated to be produced in the second half of 2024. Commercial tire production is expected to start in early 2025.

Nokian Tires: Receives Payment for Sale of Its Operations in Russia  Link...

Nokian Tyres has received the sales price of EUR 285 million from PJSC Tatneft for the sale of its operations in Russia. The total permissible transaction price defined by the Russian Governmental Commission was 23,050 million ruble. The RUB/EUR exchange rate as determined by the Russian Central Bank on the day of payment was applied.

After registration formalities in Russia, the transaction will be completed, and Nokian Tyres’ operations in Russia will end.

The initial release (28 Oct 2022) indicated an approximate sale price of EUR 400 million.

Nokian Tires: PJSC Tatneft Recieves Russian Government Approval to Purchase Nokian Tyres' Russian Operations  Link...

Based on the information Nokian Tyres received from PJSC Tatneft, The Russian Governmental Commission on Monitoring Foreign Investments (the Russian Governmental Commission) has approved PJSC Tatneft’s purchase of Nokian Tyres plc’s operations in Russia. The signing of the transaction was announced on October 28, 2022.

Substantial uncertainties still remain related to the transaction and the timing of it as well as the RUB/EUR exchange rate on the day of payment. The final closing of the transaction is subject to successful completion of compliance checks against the recent changes in sanctions and money transfer, among others.

Nokian Tires: Starts Contract Manufacturing to Secure PC Tire Availability in Central Europe  Link...

Nokian Tyres plc and Qingdao Sentury Tire Co., Ltd. have signed a contract manufacturing agreement. According to the agreement, Qingdao Sentury Tire starts to manufacture selected Nokian Tyres’ passenger car tires for the Central European market. Tires manufactured at the partner’s production facility are designed by Nokian Tyres and have been tested in Nokian Tyres’ testing facilities to meet the company’s high requirements for safety and quality. Tires will be sold under the Nokian Tyres brand.

Nokian Tyres is in the process of negotiating additional contract manufacturing agreements, and the total annual volume of these agreements in 2023–2027 is estimated to be between 1 to 3 million to complement the production at Nokian Tyres’ own facilities.

The collaboration between Nokian Tyres and Qingdao Sentury Tire builds on a long-term partnership and it secures the availability of the company’s high-quality tires in the Central European market. The start-up of the production will be in the first half of 2023 and the first tires will be in the market in the second half of 2023. The manufacturing site will be regularly audited according to Nokian Tyres’ quality, sustainability and safety requirements.

Nokian Tires: Planning New Greenfield Plant in Romania  Link...

Nokian Tyres is investing 650 million EUR in a new greenfield tire factory in Romania with commercial production expected to start in 2025. Nokian also continues to increase capacity at its factories in Finland and the U.S. These moves are required to create the 'new Nokian Tyres' without Russia.

Nokian Tires: Selling Russian Operations  Link...

Nokian Tyres plc has signed an agreement to sell its Russian operations to Tatneft PJSC. The debt free and cash free purchase price is expected to be approximately EUR 400 million. The transaction is subject to approval by the relevant regulatory authorities in Russia and other conditions, which creates substantial uncertainties related to the timing, terms and conditions and the closing of the transaction.

Upon the closing of the transaction, Nokian Tyres ends all its operations in Russia and the company’s personnel in Russia will transfer to the new owner.

Nokian Tires: Initiates Controlled Exit From Russia  Link...

Nokian Tyres’ Board of Directors has decided to initiate a controlled exit from the Russian market. Due to the war in Ukraine and the subsequent, tightening sanctions it is no longer feasible nor sustainable for Nokian Tyres plc to continue operations in Russia. The exit preparations will start immediately, and the company will evaluate different options for the exit. The process will be done with due consideration to local employees and legislation.

As part of the process, Nokian Tyres will record impairments of approximately EUR 300 million related to the Russian assets in the second quarter of 2022. These will be recorded as non-IFRS exclusions. Taking the impairments into account, the value of Nokian Tyres’ net assets in Russia and Belarus totalled approximately EUR 400 million on May 31, 2022.

Nokian Tires: Expediting Plans to Invest in New Capacity in Europe  Link...

Nokian Tyres is expediting its plans to invest in new production capacity in Europe due to the war in Ukraine. Nokian Tyres is also continuing to increase capacity at its factories in Finland and the US, aiming to become geographically more diversified in its manufacturing operations.

Nokian Tyres is no longer investing into production in Russia. By continuing to operate the passenger car tire factory in Russia, the company wants to make sure that the factory is controlled by Nokian Tyres. Shipments of passenger car tires to Russia have been suspended. All Nokian Tyres’ heavy tires are designed and manufactured in Finland. Tires for trucks and buses are designed in Finland and produced in the EU. Sales and distribution of heavy tires to Russia has been stopped. Nokian Tyres has never sold tires to the Russian army, and the Russian Federation is not a customer of Nokian Tyres.

Nokian Tires: Introduces Concept Tire with 93% Recycled/Renewable Materials  Link...

The Nokian Tyres Green Step winter concept tire has 93% of its materials content either recycled or renewable. This helps move the company closer to its 2030 goal of 50% of all raw materials used in its tires to be recycled or renewable.

The concept tire uses all natural rubber with renewable oils (e.g. canola oil), plasticisers, resins and process aids. Rice husk silica is the main tread and sidewall filler, with renewable cord fibers also included.

Almost every component of the Green Step also includes some recycled materials. For example, the carbon black used in the rubber compounds was derived from end-of-life tires, and the butyl used in the inner surface as well as the steel in the steel belts and bead wires in the structure are mainly recycled.

Nokian Tires: Focusing on Premium Segments for Growth in Heavy Tires  Link...

Nokian Heavy Tyres (NHT) is targeting to grow by 50% in mid-term. The global heavy tires business is steadily growing above 4% per year, but Nokian Heavy Tyres’ target is to grow more than 10% per year.

NHT is building new capacity from 20 to 32 million kilos by investing approximately 70 million euros by 2023 helping it to meet the growing market demand. There will be developments in digital capabilities, processes, production, sales and logistics, as well as directly with customers, by connecting tires with different electronic systems and developing smart tires.

Nokian Tires: Adding Third and Fourth Production Shifts at US Factory  Link...

Nokian Tyres is adding third and fourth production shifts at its US factory to increase output capacity to 24/7 production at the facility, in response to rising demand. Adding shifts meets Nokian Tyres’ plans to produce as many as one million tires at the Dayton factory in 2021.

Nokian Tires: Increasing PC Tire Production at Finnish Factory  Link...

Nokian Tyres plc is increasing production capacity for passenger car tires by about 30% at its Finnish factory, this is being accomplished by starting to run four shifts. Nokian has seen an increase in demand for its tires starting late last year and into 2021. Passenger car tire production in Nokia is currently running three shifts five days a week. After the recruiting, the factory will run four shifts six days a week.

Nokian Tires: Including Raw Material Suppliers in CO2 Reductions Program  Link...

Nokian Tyres was the first company in the tire industry to receive Science Based Targets initiative (SBTi) approval for its emission reduction targets. The approval was published in May 2020 and the targets were later updated at the SBTi’s request.

Nokian Tires' new emission reduction targets, aligned with the SBT program, will greatly extend the impact of its operations, as they will also affect its partners, impacting the emissions of over 100 different companies.

The production of the raw materials for tires currently generates four times as much CO2 emissions per tire than the manufacturing of the tires themselves. Nokian Tires aim to reduce emissions from tire raw material production by 25% between 2018 and 2030. Achieving this goal requires that raw material producers implement their own actions in order to reduce emissions. These changes typically include transitioning to zero or low-emission energy and improving the energy efficiency of the entire production process. Nokian Tires can also favor raw materials that produce lower emissions when choosing materials and suppliers.

Nokian Tires: Commercial Production Begins at Nokian Tyres' North American Factory  Link...

Nokian Tyres has begun producing tires for commercial sale at its North American factory in Dayton, Tennessee. The highly automated factory uses sustainable processes and is producing premium all-season and all-weather tires tailored to the needs of the North American market. The facility will produce up to 4 million tires pa by 2023

Nokian Tires: Celebrates Opening of Its First US Factory  Link...

Nokian Tyres celebrated the opening of its North American factory in Dayton, Tennessee. The factory is currently in the trial production stage and will be ready to make tires for commercial use in early 2020. The eco-friendly facility will build a robust mix of all-season and all-weather products to meet consumer needs and fill rising demand for its products.

Nokian Tires: Produces First Test Tire at New Dayton, Tennessee Factory  Link...

Nokian has produced its first test tire at the new production factility in Dayton, Tennessee. The production facility remains on schedule to begin producing tires for commercial use in early 2020.

Nokian Tires: Progressing with Expansion of Heavy Tire Production in Finland  Link...

Nokian Heavy Tyres is progressing with its 50% expansion to heavy tire production capacity at its Finland plant. The expansion also includes significant investment in product development capabilities. Full capacity is expected to be reached in 2021.

Nokian Tires: Increasing Heavy Tire Production at Nokia Plant  Link...

Nokian Heavy Tyres Ltd, part of the Nokian Tyres group, is increasing its production capacity by 50% by investing total approximately EUR 70 million in its factory in Nokia over the following three years. The aim is to increase the maximum capacity for heavy tyre production from approximately 20 million kg to 32 million kg.

Nokian Tires: Principal decision to invest in greenfield USA factory (Dayton, Tennessee)  Link...

Nokian Tyres’ Board of Directors has made a principal decision on the investment in the third factory and authorized the management of the Company to sign a Letter of Intent with the respective authorities in the USA. The new greenfield factory will be located in Dayton (Rhea County), Tennessee, USA. The annual capacity of the factory will be 4 million tyres with an expansion potential in the future. The site will also house a distribution facility with a storage capacity of 600,000 tyres. The total investment amount at this phase is approximately USD 360 million. Construction is scheduled to begin in early 2018 and the first tyres are to be produced in 2020.

Nokian Tires: To start statutory negotiations to adjust operations in Nokia, Finland  Link...

Nokian Tyres will start statutory negotiations on 14 August 2015 with all personnel in Nokian Tyres plc at Nokia, Finland, concerning a total of 900 people. Nokian Tyres has downgraded its outlook for 2015 due to the weakened economic situation in Russia and CIS countries. Car tyre sales have continued to decline in these areas. The weakened economic situation and the planned production cuts in Nokia plant have created the need to rationalize operations and to execute structural changes. The agenda of the negotiations includes a plan to decrease the annual output of the passenger car tyre production at the Nokia factory. The company aims to create savings of approximately 8 MEUR per year. The adjustments are planned to be carried out by the reduction of maximum 150 positions.

Nokian Tires: Statutory negotiations at Nokian Tyres’ Finnish factory ended  Link...

The statutory negotiations at Nokian Tyres’ Finnish factory concerning workers and staff in car tyre production, maintenance and quality departments ended on 9 October 2014. Adjustments to production capacity utilization as well as cost savings will be achieved mainly with temporary lay-offs and transfers to new positions. The car tyre production will be cut through temporary lay-offs by not more than 21 production days during 2014, and by a maximum of 38 production days in 2015, subject to the market situation. The Nokian Tyres’ Finnish factory has approximately 570 workers and staff in the car tyre production.

Nokian Tires: Drop in first half sales due to weak demand in Russia and Ukraine  Link...

Nokia, Finland – Nokian Tyres reported a net sales drop of 9.4% in its first-half 2014 results due to weak demand in Russia and the Ukrainian crisis.