Nokian has called the victory of one of its products in the German car magazine Auto Zeitung’s 2012 4×4 tyre test, which appeared in the 12/2012 addition of the publication, as an “outstanding result”. The Nokian Z SUV secured first place overall and was described as “very good on wet surfaces” with “safe handling characteristics, low rolling resistance.” Auto Zeitung also referred to the tyre as “good value.”
Production at Nokian’s new factory in Vsevolozhsk, built alongside the company’s existing plant, will begin in June 2012. Two production lines are scheduled to enter service this year and a further two are to begin production in 2013 and 2014. At this time, the plant’s annual capacity will be six million tyres and the two Russian factories will have a combined annual capacity of approximately 17 million tyres.
Nokian’s recently reported first quarter 2012 financial numbers were 9 per cent ahead of consensus when it came to pre-tax profits (EBIT). In addition the Finnish firm’s revenue result during the same period was 5 per cent higher that average of market analysts expectations. According to analysts at Morgan Stanley, Nokian’s margin was also 100 basis points better than expected at 27.3 per cent. In fact the only cloud on the horizon was said to be net debt which was weaker than estimates perhaps because of high working capital.
Nokian has introduced a new truck tyre range that “withstands the challenges of rough surfaces.” The NTR 46 on/off road front tyre, it says, has been particularly designed for gravel, timber and milk trucks. The Finnish tyre maker adds that the NTR 46 “guarantees steady movement” thanks to its robust structure and tear and puncture resistant rubber compound, which it says was developed to endure hard use. The NTR 46 is M+S marked for year-round use.
Test driver Janne Laitinen from Nokian Tyres reached a speed of 252.09 km/h (156.64 mph) in the E-RA electric car on the ice of Lake Ukonjärvi in Inari, Finland. The record, achieved on 17 March by Nokian and the Helsinki Metropolia University of Applied Sciences' high-tech E-RA (Electric RaceAbout) vehicle, is unique.
In its 2011 annual report, Nokian Tyres has singled Russia out as the company’s strongest growth area. Reporting rising sales in all Nokian’s key regions – the Nordic markets, Central Europe and Russia – and growing market share in the last two of these, president and CEO Kim Gran stated that “as expected, this development was strongest in Russia, which, boosted by the car business, represented approximately one-half of our growth.”
The comparative tests conducted by German publications carry a lot of weight within the European tyre industry, and therefore manufacturers are keen to spread the word when their products are evaluated favourably. Motorwelt, the magazine distributed to all members of the motoring organisation ADAC, evaluated two sizes of summer passenger car tyre and one 4×4 tyre in its March 2012 edition. Apollo Tyres has already shared news of its 3G Maxx’s performance in the 165/70 R14T class; now Bridgestone reports a strong finish for its Turanza T001 in the size 205/55 R16V category.
Nokian claims a pair of tyre test victories for its summer products; the Nokian Z G2 scored a win in the German Volkswagen and Audi specialist magazine “Gute Fahrt”, while the Nokian H took top honours in the “Auto Zeitung”, which is also published in Germany.
Nokian has introduced its new Rotiiva AT (All Terrain) summer tyre for SUVs into its core European markets. The tyre, says Nokian is excellent on asphalt or gravel, but also performs well in lighter off-road conditions. The sturdy structure and tailored, cut-resistant tread compound give the tyre excellent durability when used with heavier cars. The comprehensive selection of sizes is aimed at light trucks, larger SUVs, and pick-ups. The selection of sizes covers a total of 26 models from 15" up to 20".
Nokian Tyres has introduced a new winter range for larger 4×4 vehicles, light trucks and vans. Known as the Hakkapeliitta LT2, the tyre employs the same innovations and technical solutions used in the Hakkapeliitta 7 passenger car tyre, however the Finnish tyre maker says the LT2 has been designed for heavy-duty use and this “combines uncompromised grip and exceptional durability.”
Only five months after reporting the opening of its 800th Vianor outlet, Nokian Tyres says it has reached the 900 mark. The company’s 900th tyre and car service centre has begun operations in Bucharest, Romania.
In November, Nokian Tyres reported weakening demand for its heavy tyres and its intention to scale back production. Following statutory negotiations, which ended on 12 December, Nokian Heavy Tyres Ltd confirmed it will alter the main working pattern for heavy tyre production to a discontinued five-day, three-shift model and temporarily lay off employees. Around 260 employees will be laid off for a maximum of 12 months, with lay-offs taking place during 2012 and the duration for each employee decided upon according to their work tasks and the development of order intake over the course of the year.
Financial analysts have commented on Nokian’s plans to scale back its heavy tyre production, saying they are symptomatic of the macro-economic environment. Nokian announced the news of the 25 November, following a reported slowdown in orders for the first quarter of 2012. “While this is not huge news (Nokian expected weaknesses in 2012) it stresses how fragile demand is for the pro cyclical heavy and truck tyres is in a recessionary environment,” financial analysts from Morgan Stanley reported in an investor’s note published the day of the news.
Following a drop in demand for Nokian heavy tyres and the expectation that lower demand will continue into 2012, the Finnish manufacturer has opted to reduce its production output of these products. On 25 November Nokian shared details of a preliminary plan to change the working pattern of its heavy tyre production to a discontinued five-day, three-shift model and to reduce the work input of approximately 100 factory and 15 white-collar employees through lay-offs. The company says that personnel cuts are also a possibility.
A website celebrating the 75th birthday of the world’s longest-produced winter tyre range has gone live. This year Nokian Tyres is celebrating three quarters of a century of Hakkapeliitta production, and anyone wishing to learn more about the tyre’s history and heritage can visit the company’s www.hakkapeliitta75.com website; featured on the site is are images and videos of Hakkapeliitta tyres over the decades, as well as a timeline and thematically-presented information about the tyre and the Finnish manufacturer.
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