NOKIA, Finland — Nokian Tyres P,L.C. is aiming to increase its annual sales by nearly two-thirds to $2.4 billion in three to five years and improve segments operating profit by 20% over the next few years, the Finnish tire maker announced Sept. 8.
Revising its mid-term strategy and updating its financial and non-financial targets, Nokian said it aimed to achieve the goal through organic growth ahead of the market and increasing share in all key markets.
Mid-term refers to three to five years' time, with the base level being the cumulative 12 months from the second half of 2020 to first half of 2021, Nokian told ERJ.
Nokian reported sales of $1.5 billion.
In the first half of 2021, the tire maker reported sales of $897 million, while segments operating profit stood at $166 million.
"Our large investment phase is completed, and we are well positioned for organic growth and strong performance," Jukka Moisio, Nokian president and CEO, said. "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."
Citing LMC Tyre figures, Nokian said it expected the global tire market to grow by approximately 5% annually by 2024.
"Nokian Tyres' mid-term target is to exceed the market growth and reach ($2.4) billion in net sales," it said.
The mid-term growth strategy, said Nokian, builds on the company's competitive strengths, such as quality, branding, effective supply chain and sustainability efforts.
"The company has launched a record number of new products in 2020–21 and will continue to accelerate innovation to further strengthen its competitiveness," Nokian said.
Nokian also set the following targets:
- 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;
- Carry out a sustainability audit of 100% of its critical active suppliers by 2025; and
- Decrease accident frequency (LTIF) yearly by 20%.