NOKIAN HEAVY TYRES
The leading forestry tyre manufacturer
Nokian Heavy Tyres focus on high-quality special tyres. The key product groups are forestry tyres, harbour and mining tyres, special agricultural tyres and a variety of industrial tyres. The unique qualities of the products arise from the knowledge of extreme driving conditions and respect for nature. Key products are manufactured in Nokia, Finland. Key markets include the Nordic countries, as well as Central and Southern Europe, the USA and Canada, Russia and the CIS countries. Nokian Heavy Tyres is known for its professional, flexible customer service.
Nokian Heavy Tyres has a global market share of 30% in forestry tyres. The company has designed special tyres for forestry machines deploying the modern CTL (cut-to-length) method invented in the Nordic countries in the 1960s. Today it is the global market leader in this field. The company has the benefit of being closely located to the world’s leading machine and equipment manufacturers. Co-operation in product development and testing has been intense. Sales to Original Equipment manufacturers have accounted for approximately 40% of the unit’s net sales. The customers of Nokian Heavy Tyres appreciate tyres that are functional and economical overall. For them, economic hourly usage costs of tyres and machines are more important than low purchase prices.
Improved structure, recovering forestry tyre demand
In 2013 Net sales of Nokian Heavy Tyres totalled 96 million euros, and Operating profit was 10 million euros. To summarize the year, there was generally weak demand in special heavy tyres and machine building in Europe was slowing down. However, Nokian forestry tyre order book started to grow towards the end of 2013. Margins were supported by flat ASP in a challenging market, lower raw material cost and improved productivity.
The production output was optimized and to control the inventory level, ending up 11% below the output tonnes in 2012. An investment program has been in progress to modernize the factory, to open bottlenecks in production and to increase radial tyre output. The upgrade of the factory will be completed in the beginning of 2014. The structural changes in manufacturing already reduced manning and improved product quality, flexibility, and productivity in 2013.
Nokian Heavy Tyres successfully developed its distribution network. New distribution agreements and an increase in the number of Vianor Industrial stores further improved customers’ opportunities for personal technical service.
The Truck tyre division has been integrated to the Heavy Tyres division from the beginning of 2014. Synergies are expected to materialize both in sales and in fixed costs already in 2014.