Nokian expects to pay more for raw materials, logistics

Stockholm – The on-going recovery from the impact of the global pandemic is being accompanied by significant increases in raw-materials and supply-chain costs, executives  at Nokian Tyres believe.

Looking at raw materials, Nokian’s CFO Teemu Kangas-Kärki noted that market dynamics had changed considerably since last autumn, when the outlook was for costs to increase by 2% to 3% in 2021. 

“Now, our view is that it is going to be on a level of 4% to 5%, but that is clearly dependent on the overall demand,” Kangas-Kärki said during a discussion of Nokian’s 2020 results. 

And, while pressure on logistics costs “might stabilise throughout the year,” president and CEO Jukka Moisio said the situation was “quite fragile at this point in time.”

At present, however, the Nokian leader commented that “the cost of containers and cost the transportation likely to be on the high side.”

On the other hand, given the continuing recovery in demand, Moisio believes “there's good momentum to ensure that the raw material increases are also in the selling prices.”