Business

Nokian Tires announces its medium-term growth strategy

Nokian Tires‘ Board of Directors has approved the company’s revised mid-term strategy and updated financial and non-financial targets.

The Board of Directors has approved the following mid-term financial targets:

  • Growing faster than the market: Net sales EUR 2 billion
  • High returns and profitability: Segments operating profit and segments ROCE at the level of 20%
  • Growing ordinary dividend: Dividend above 50% of net earnings

“Our large investment phase is completed, and we are well positioned for organic growth and strong performance. 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”, says Jukka Moisio, Nokian Tires’ President and CEO.

The global tire market is expected to grow by approximately 5% annually by 2024 (source: LMC Tire & Rubber). Nokian Tires’ mid-term target is to exceed the market growth and reach EUR 2 billion in net sales. Macro trends, such as an increasing number of new car models, rising SUV and CUV penetration and climate change mitigation, are driving demand for sustainably produced, innovative tires.

Non-financial targets focus 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.

  • Increase the share of either recycled or renewable raw materials in tires to 50% by 2030
  • Reduce CO₂ emissions from both raw materials and tires by 25% between 2018–2030
  • Decrease accident frequency (LTIF) yearly by 20%
  • Sustainability audit 100% of critical active suppliers by 2025

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