Nokian growth strategy targets 2 billion euros net sales, increased sustainability

Nokian Tyres’ board of directors has approved its revised mid-term strategy and updated financial and non-financial targets. The Finnish tyre manufacturer is targeting growth faster than the market to reach net sales of 2 billion euros, plus an increasing market share in its key markets. “Our large investment phase is completed, and we are well positioned for organic growth and strong performance,” said , Jukka Moisio, Nokian president and CEO.

“With our current manufacturing capacity, a valued brand and a world-class team, we are now ready to take an ambitious leap forward to become a EUR 2 billion revenue company. We will continue to improve operational and commercial performance, which, together with the growing markets, will propel our company to the next level in the years ahead.”

Nokian wants to deliver growth through new products and market strategies, with which it wants to beat annual expected global tyre market growth of 5 per cent by 2024 – a figure sourced from LMC Tyre & Rubber. It adds that the macro trends of an increasing number of new car models, rising SUV and CUV penetration, and climate change mitigation are driving demand for sustainably produced, innovative tyres.

Nokian says its strategy builds on competitive strengths, such as high-quality products and a premium brand, effective supply chain, and leadership in sustainability. The company has launched a record number of new products in 2020–2021. It wants to continue to accelerate this innovation to strengthen its competitiveness.

Nokian claims it is “a frontrunner in sustainability”, and is therefore setting ambitious non-financial targets embedded throughout its core operations in this area. It is focused on bringing new environmental and safety innovations to products, reducing CO₂ emissions in line with the Science Based Targets, further improving workplace safety, and monitoring the sustainability of suppliers.

It said that it will:

• increase the share of either recycled or renewable raw materials in tyres to 50 per cent by 2030
• reduce CO₂ emissions from both raw materials and tyres by 25 per cent between 2018–2030
• Decrease accident frequency (LTIF) yearly by 20 per cent
• Sustainability audit 100 per cent of critical active suppliers by 2025.