Nokian Tires’ Russian subsidiary assists Finnish company in record sales growth

Finnish Nokian Tires, the world’s largest tire manufacturer for severe climatic conditions, had an operating profit of 44.3 million euros in the first three months of the year, with a turnover of 341.8 million euros, the key role is still played by the company’s largest asset – a tire plant in Russia Vsevolozhsk in the Leningrad region, the company said.
“Demand for replacement tires has rebounded quickly since the end of 2020. In the first quarter, we achieved a record high sales volume. Thanks to the excellent performance of all our business units and destinations, net sales were up 28.5% in comparable currencies. Operating profit for the segments has grown significantly due to increased sales volumes, “- said the president of the company Jukka Moisio, quoted in the message.
The Russian division also showed growth.
“In the area of ​​passenger car tires, sales growth was particularly strong in Russia as we increased our market share, especially for summer tires. On the other hand, the weak Russian ruble, together with a higher share in Russian volumes, had a significant negative impact on the average realized price. To ensure the availability of our premium products, we have fully loaded the Russian plant, ”notes Moisio.
Nokian Tires continues to ramp up production at its US plant, which opened at the end of 2019, aiming to reach 1 million tires this year.
Nokian Tires is the world’s northernmost tire manufacturer and one of the most resilient companies in the industry. Tires are produced at our own factories in the cities of Nokia, Finland (6 million tires per year), Russian Vsevolozhsk, Leningrad region
(14 million tires a year) and American Dayton. The company also places orders for the production of tires under its own brand at third-party enterprises.