Nokian will increase production in the US and Russia

Finnish tire manufacturer Nokian is looking to expand production capacity at its plants in Vsevolozhsk, Russia, and in Dayton, USA. This will be done as part of the coronavirus pandemic recovery plan.

During a conference call, President and CEO Jukka Moisio announced that the focus will be on increasing heavy tire production and improving efficiency at the company's oldest plant in Nokia, Finland. To increase overall production, Nokian is also working on the launch of a second shift at a US facility in Dayton, Tennessee. Then it is planned to add a third shift and bring production to 4 million tires per year over the next three to four years.

“This capacity and capacity will help us increase sales once the market recovers,” the CEO of Nokian said, noting that a more thorough analysis of the long-term growth strategy will be undertaken once the market stabilizes.

In addition, the Finnish tire manufacturer plans to expand its network with additional distributors and dealers, as well as new promotions and marketing activities. Nokian Tires is also looking to update some products and add new ones to expand the offer and fill gaps in the range, especially in North America.

Financially, Jukka Moisio said the company has set itself a "conservative but good" target of 5% growth by the end of the year.

“We have a well-established system,” he said. - We need to support what we do. We will grow, increase productivity and launch new products. ”

Previously, in order to mitigate the negative impact caused by the Covid-10 pandemic, Nokian Tires had to significantly cut costs and temporarily suspend production at the beginning of the year. In the first half of the year, the Finnish manufacturer posted a net loss of 13.7 million euros, while for the same period in 2019, its net profit reached 148 million euros.