Nokia, Finland – Nokian Heavy Tyres expects to complete an expansion project at its headquarters facility in Nokia by 2023, according to executive vice president Manu Salmi.
The €70-million project to raise capacity from 20 to 32 million kilos per annum was originally expected to reach full capacity by the end of 2021.
However, in a recent capital markets day presentation the EVP for heavy tires and Nokia factory said the expansion will be ready by 2023.
The expansion is part of Nokian Heavy Tyres's strategy to grow by 50% over the next 3-5 years, Salmi explained.
While the global heavy tires business is steadily growing above 4% per year, Nokian’s target is to grow more than 10% per year, he added.
“There are four main growth drivers: distribution, more capacity, widening the product portfolio by 50%, and developing digital capabilities,” said Salmi at the capital markets day in September.
Key growth markets, he went on to say, are Central Europe and North America, where the company aims to strengthen sales team and focus on new distribution customers.
Furthermore, Nokian intends to develop digital capabilities in its own processes, production, sales and logistics, as well as with customers directly with smart tires.
Salmi noted that Nokian is already strong in forestry tires and will aim to “go to segments where we have not been before, [and] target new customers,” as part of its growth strategy.
Among other segments, agricultural tires will be one of the key growth targets, where Nokian expects to offer its “new technologies like very high flexion tires for the high horsepower tractors and tires for trailers.”
In terms of expanding product portfolio Salmi said a recently launched R&D centre will help the company meet customer demands and make new innovations.
“At the R&D centre we have new machinery, which is our own design, so there is nothing else like it in the world,” he added.