Nokian Tyres recaps its 2022 success
Nokian Tyres in North America started 2022 with ambition. It ended as a success despite unexpected challenges, thanks to strong partnerships, growth at the company’s North American factory, and popular products tailored to the needs of drivers in the region, said officials.
“When we started 2022, the sky was the limit,” said Nokian Tyres Vice President of Sales Tommi Heinonen. “We were launching new products and the market was moving.”
Then war broke out in Ukraine, clouding Nokian Tyres’ sales outlook and disrupting its supply chain.
In June 2022, Nokian Tyres announced that it would initiate a controlled exit from Russia. The company 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.
Nokian Tyres has been operating in Russia since 2005. In 2021, approximately 80% of the company’s passenger car tires were produced in Russia and the business area Russia and Asia represented approximately 20% of Nokian Tyres’ net sales. The exit from Russia could significantly impact Nokian Tyres’ financial results.
Despite uncertainty and adversity, the company succeeded by growing existing dealer and distributor relationships, expanding domestic production volume at its factory in Dayton and launching new products.
“The year has had a lot of ups and downs, but successful partnerships, production growth and popular products drove success, even in a difficult year. That bodes well for the year ahead,” Heinonen said. “In 2023 we’ll have good news from Dayton, and our supply situation is improving.”