Nokian to form Commercial Tyres unit from truck and heavy tyre businesses

As of 1 January 2014, Nokian Tyres’ Heavy Tyres and Truck Tyres business units will be integrated into a single entity, Commercial Tyres. The Finnish tyre maker says the integration of both operations into a combined business unit will not have any immediate impact on the 280 or so people currently employed in Heavy Tyres and Truck Tyres, and it states the decision to form the Commercial Tyres business unit was taken in order to provide a “better chance to develop operations and improve sales.” Nokian president and CEO Kim Gran also pointed out that the synergies of integration should clearly improve profitability.

Sales of Nokia’s heavy tyres decreased 7.5 per cent year-on-year in 2012 to €104.4 million, while sales of truck tyres (together with retreading materials) declined 10.2 per cent to €52.9 million euros. Heavy tyre production volumes went down 13 per cent, and in its 2012 annual report Nokian said production during the year was “optimised to match a lower demand from OE customers and to reduce the inventory level.” Truck tyre demand in 2012 was 19 per cent lower than a year earlier.

Pontus Stenberg, who joined Nokian as managing director of Vianor in 2010 and was appointed vice-president of Truck Tyres in January 2012, will be the director of the new business unit. Ahead of the merger Stenberg will, as of 1 October 2013, also act as director of Heavy Tyres. Current director of Heavy Tyres, Jarmo Puputti, will join another company as of 1 November 2013.