Market leader in tyres for modern forestry machinery
Nokian Heavy Tyres manufactures high-quality special tyres. The key product groups are forestry tyres, harbour and mining tyres, special agricultural tyres and a variety of industrial tyres. Key products are manufactured at our plant in Nokia, Finland. The unique qualities of the products arise from our familiarity with extreme driving conditions and our respect for nature. Key markets include the Nordic countries, as well as Central and Southern Europe, the USA and Canada, Russia and the CIS countries. Nokian Heavy Tyres is known for its professional, flexible customer service – the best in its field.
Nokian Heavy Tyres has a global market share of 30% in forestry tyres. The company has designed special tyres for forestry machines deploying the modern CTL (cut-to-length) method invented in the Nordic countries in the 1960s, and it is the global market leader in this field. The company has the benefit of being closely located to the world’s leading machine and equipment manufacturers, with which it co-operates closely in the field of product development and testing, and OE sales have, on average, accounted for approximately 40% of the unit’s net sales. The customers of Nokian Heavy Tyres appreciate tyres that are functional and economical overall. For them, economic hourly usage costs of tyres and machines are more important than low acquisition prices.
Successful structural changes in 2012
Sales of mining and radial tyres showed growth both in OEM and replacement markets, especially in North America and Russia. However, the unit’s total sales decreased due to a weaker forestry tyre demand and a slowing down of machine building in Europe. ASP increased by 6% due to an improved sales mix, combined with price increases and a higher share of sales to the replacement market.
The production volume (tonnes) decreased by 13% year-over-year. During 2012, the production was optimised to match a lower demand from OE customers and to reduce the inventory level. The results were penalized by the lower utilisation rate and structural changes relating to renewing product specifications throughout the year. The structural changes are targeted to improve product quality, flexibility and productivity for 2013.
Investments are in progress to modernise the factory, to open bottlenecks in production and to increase radial tyre output. The upgrade of the factory will be completed in 2013.
Nokian Heavy Tyres successfully developed its distribution network. New distribution agreements and an increase in the number of Vianor Industrial stores further improved customers’ opportunities for personal technical service.
Nokian Heavy Tyres:
Net sales, operating profit and operating profit%