fbpx
SA Treads
Advertisement
  • Home
  • Advertise
  • About SA Treads
  • From the Editor
  • International
  • Southern Africa
  • SATreads Digital Issue
  • Podcast
  • Contact Us
No Result
View All Result
  • Home
  • Advertise
  • About SA Treads
  • From the Editor
  • International
  • Southern Africa
  • SATreads Digital Issue
  • Podcast
  • Contact Us
No Result
View All Result
SA Treads
No Result
View All Result
Home International

Nokian Tyres plc announces its mid-term growth strategy to reach EUR 2 billion in net sales

Liana Shaw by Liana Shaw
Sep 10, 2021
in International
0
Nokian Tyres plc announces its mid-term growth strategy to reach EUR 2 billion in net sales
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter

Nokian Tyres’ Board of Directors has approved the company’s revised mid-term strategy and updated financial and non-financial targets. Nokian Tyres aims for organic growth ahead of the market, and increasing market share in all key markets.

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 Tyres’ President and CEO.

Growth will be driven by new products and smart Go-To-Market strategies

The global tire market is expected to grow by approximately 5% annually by 2024 (source: LMC Tyre & Rubber). Nokian Tyres’ 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.  

The mid-term growth strategy builds on Nokian Tyres’ competitive strengths, including high-quality products and a premium brand, effective supply chain, leadership in sustainability and a strong Nokian Tyres team. The company has launched a record number of new products in 2020–2021 and will continue to accelerate innovation to further strengthen its competitiveness and unique positioning in the premium tire segment. This expanding product offering, together with smarter Go-To-Market strategies and improving commercial capabilities, will drive top-line growth. Reinforcing Nokian Tyres’ brand in the regions will be a key element in closer collaboration with customers. Profitability improvement will be driven by increasing volumes and operational efficiency. 

New non-financial targets set the bar higher

As a frontrunner in sustainability, Nokian Tyres has set the bar even higher by introducing new, ambitious non-financial targets and embedding them throughout the core operations.

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.

Nokian Tyres will, for example:

  • 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

All non-financial targets can be found at https://www.nokiantyres.com/company/sustainability/environment/our-targets-and-achievements/.

Nokian Tyres was the first in the tire industry to receive official approval for its climate targets from the Science Based Targets initiative (SBT) and has been included in the Dow Jones Sustainability Index for four consecutive years, ranking it among the most sustainable publicly traded companies in the world.

Along with the revised growth strategy, Nokian Tyres has defined its purpose, which is to empower the world to drive smarter. The company has for decades safeguarded people’s lives and is committed to continuing this effort through even safer, smarter and more sustainable driving.

Capital Markets Day

Nokian Tyres’ management will present the company’s growth strategy and financial targets in more detail at the virtual Capital Markets Day 2021 held on Thursday, September 9, 2021 starting at 1:00 p.m. Finnish time. The live webcast can be followed at https://nokiantyres.videosync.fi/2021-09-09-cmd2021. Further information is available at https://www.nokiantyres.com/company/investors/ir-services/ir-calendar/capital-markets-days

Previous Post

Stability on horizon for 39.6 million tonne tire raw material market, Smithers research finds

Next Post

Happy 35th Birthday Supa Quick!

Liana Shaw

Liana Shaw

Next Post
Happy 35th Birthday Supa Quick!

Happy 35th Birthday Supa Quick!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

14 of the best car tyres for 2019

May 6, 2019
Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

Sep 14, 2020
Bridgestone to suspend manufacturing activities in and export to Russia

Bridgestone to suspend manufacturing activities in and export to Russia

Mar 14, 2022
SA Treads Digital Dec./Jan. 2021  – Release

SA Treads Digital Dec./Jan. 2021 – Release

Dec 15, 2020
Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

4
SUPAQUICK ON AGGRESSIVE EXPANSION PROGRAMME POTENTIAL

SUPAQUICK ON AGGRESSIVE EXPANSION PROGRAMME POTENTIAL

4
MIND THE POTHOLE! – By Liana Shaw

MIND THE POTHOLE! – By Liana Shaw

4

Vipal Rubber celebrates 15 years of partnership with Tyre & Retread Supplies in SA

3
A share of R1.5 million up for grabs with Dunlop Tyres this winter 

A share of R1.5 million up for grabs with Dunlop Tyres this winter 

Jun 24, 2022
Relentless performance at Goodyear’s biggest 24 Hours of Le Mans since comeback

Relentless performance at Goodyear’s biggest 24 Hours of Le Mans since comeback

Jun 23, 2022
Vishal Premlall to head up TEPA

Vishal Premlall to head up TEPA

Jun 22, 2022
Vipal’s exclusive tread receives 3PMSF certification

Vipal’s exclusive tread receives 3PMSF certification

Jun 21, 2022

Recent News

A share of R1.5 million up for grabs with Dunlop Tyres this winter 

A share of R1.5 million up for grabs with Dunlop Tyres this winter 

Jun 24, 2022
Relentless performance at Goodyear’s biggest 24 Hours of Le Mans since comeback

Relentless performance at Goodyear’s biggest 24 Hours of Le Mans since comeback

Jun 23, 2022
Vishal Premlall to head up TEPA

Vishal Premlall to head up TEPA

Jun 22, 2022
Vipal’s exclusive tread receives 3PMSF certification

Vipal’s exclusive tread receives 3PMSF certification

Jun 21, 2022

Recent News

A share of R1.5 million up for grabs with Dunlop Tyres this winter 

A share of R1.5 million up for grabs with Dunlop Tyres this winter 

Jun 24, 2022
Relentless performance at Goodyear’s biggest 24 Hours of Le Mans since comeback

Relentless performance at Goodyear’s biggest 24 Hours of Le Mans since comeback

Jun 23, 2022

Download Latest SATreads Digital Magazine

  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2020 - SA Treads news & tyre portal

No Result
View All Result

© 2020 - SA Treads news & tyre portal