Industrial structure in place – ready to accelerate

Nokian Tyres has factories in Nokia, Finland, and in Vsevolozhsk near St. Petersburg in Russia.

In connection with the Head office, product development and the manufacture of prototypes and test batches take place in Nokia. The Nokia factory manufactures passenger car tyres, heavy tyres and truck tyre treads. The annual capacity in Nokia factory in 2013 was around 3 million passenger car tyres and 18.5 thousand tonnes of heavy tyres.

The state-of-the-art Vsevolozhsk plant started operations in 2005, and the second Russian factory next to the first one commenced production in 2012. At the end of 2013 the 13 production lines have increased the Russian factories’ annual capacity to approximately 15 million passenger car tyres. The company’s investments in the Russian production plants has reached almost EUR 800 million. Tyres from Vsevolozhsk are delivered to over 40 countries, and Nokian Tyres is the largest exporter of consumer goods in Russia.

The combined output of the Nokia and Vsevolozhsk plants in 2012 was 15.0 million tyres and the annualized capacity at year-end was 18 million pcs. The company has an inbuilt capability to increase output rapidly without big investments to meet market growth.
The production costs of tyres are clearly lower in Russia than in Finland or other western countries. Production in Russia has been supported by tax relief based on the amount of investment and the location of the factory within customs barriers.

In addition to its own production facilities, the company has contract manufacturing in factories whose quality level meet Nokian Tyres’ high requirements. The share of contract manufacturing in tyre sales in 2013 was around 3%.