The leader in
Nokian Heavy Tyres focuses on high-quality special tyres. The key product groups are forestry tyres, harbor and mining tyres, special agricultural tyres, a variety of industrial tyres as well as truck tyres and retreading materials for demanding conditions. The unique qualities of the products grow out of the knowledge of extreme operating conditions and respect for nature. The core products are manufactured in Nokia, Finland. In addition to the Nordic countries, the main markets include Central and Southern Europe, the USA and Canada, and Russia and the CIS countries.
Since the 1960s, Nokian Heavy Tyres has designed special tyres for forestry machines that use the Nordic CTL (Cut-to-length) method. Today, it is the global market leader in this field with over 50% market share. On average, sales to OEMs have accounted for approximately 40% of the unit’s revenue. The customers of Nokian Heavy Tyres value the functionality and overall cost efficiency of tyres. For them, low operating costs per hour are more important than a low purchase price of tyres.
The high-quality truck tyres are developed in Finland and manufactured as outsourced contract manufacturing in factories whose level of quality meets Nokian Tyres’ high standards. Retreading materials, which are mainly used in truck tyres and machinery tyres, are manufactured at our factory in Nokia. A restructuring of the Heavy Tyres operation to include also the Truck Tyre business unit was done in the end of 2013 and the new organization became effective from the beginning of 2014, creating synergies in all operations.
In 2014, the revenue of Nokian Heavy Tyres was nearly EUR 150 million and operating profit was about EUR 25 million. In some product groups, demand exceeded Nokian Heavy Tyres’ supply capacity. Total sales volume remained at the previous year’s level, but the sales of forestry tyres grew by 15%. The changes in the currency exchange rates decreased our sales in euros. Due to the challenging pricing environment, the average price fell when compared to the previous year. Lower raw material costs and improved productivity supported our margins, and lower fixed costs improved profitability.
The production output (tonnes) in 2014 was up by 19.8% year-over-year. The production utilization rate was increased to over 90% during 2014. The factory modernization and automation have already opened bottlenecks, as well as improved product quality, flexibility, and productivity.
NOKIAN HEAVY TYRES
Net sales, Operating profit and Operating profit%
In 2014, the revenue of Nokian Heavy Tyres was nearly 150 million