Strong first-half supports Nokian expansion plans

Nokia, Finland – Nokian Tyres plc reported a 6.4% rise in first-half net sales to €765.2 million – equating to a 12.5% increase ‘with comparable currencies’ for the group, currently in expansion mode.

For the six months to 30 June, operating profit increased 9.6% year-on-year to €169.3 million, the Finnish tire maker’s half-year financial report shows.

Higher earnings, said Nokian, were driven by an improved performance of its Passenger Car Tyres and Vianor units. The Heavy Tyres business “performed well”, especially with sales of agricultural tires and forestry tires.

“We had a good first half of the year with growth in all our main markets,” commented president and CEO Hille Korhonen in an 8 Aug statement.

“To support our growth, we have decided to increase our production capacity for passenger car tyres in Finland by approximately 1 million tyres by starting to run the factory six days a week,” added Korhonen.

With this capacity increase, more than 80 new people will be hired for passenger car tyre production, the company leader pointed out.

Korhonen also went on to highlight an on-going Nokian project to build a tire-testing facility in Spain, adding that construction work on a new tire plant in Dayton, Tennessee was “proceeding as planned.”