Nokian Tyres Delivers 14 percent Sales Growth in Q1; Expansion and Cost Pressures Continue
- By Sharad Matade
- May 12, 2025
Nokian Tyres Plc reported strong year-on-year sales growth of 14.2 percent in the first quarter of 2025, with net sales reaching €269 million in comparable currency, reflecting solid performance across all regions. However, earnings were impacted by rising raw material costs and ramp-up expenses linked to new production facilities.
“We had strong sales growth in quarter one,” said President and CEO Paolo Pompei. “This is continuing our journey and strong sales growth that we had also in quarter four and quarter three last year.”
Segment EBITDA was reported at €12.25 million, or 4.6 percent of net sales, while the segment operating profit stood at a loss of €18.5 million — a deterioration from the €15.1 million loss in Q1 2024. “Obviously, we are not fully satisfied actually with the financial performance, and we have accelerated actions to improve our financial performance in the next quarters,” Pompei added.
€800 Million Investment Phase Nears Completion
The Finnish tyre manufacturer is now in the final year of a three-year investment cycle totalling close to €800 million. “Two major investments to build on our new Nokian will be done by the end of this year,” said CFO Niko Haavisto. “We are returning back to the more maintenance type of investments... estimating that to be around €120 million starting next year.”
Key among those investments is the state-of-the-art Romanian factory, which began delivering tyres at the end of March and will ramp up through 2027. “I've been myself 28 years in the business. I can tell you that the investment we've made in Romania is really state-of-the-art... also a factory that is providing us the same flexibility... that we had in Russia,” said Pompei.
Meanwhile, the Dayton, U.S. plant is expected to reach 80 percent capacity this year. “The land plot and the layout would allow us to triple the capacity there. However, it's not something that we are planning at this moment,” Haavisto said.
Margin Pressures from Raw Material and Tariff Impacts
Margins remain under pressure, largely due to input costs. “The decline was mainly driven by the higher raw materials, and obviously, the necessity as a cost to reinforce our market position in the growing market areas,” said Pompei. Price increases have already been implemented in Q1 and are expected to take effect from Q2 onwards. “We are expecting a positive development or pricing mix already starting from quarter two,” he added.
In North America, tariffs are a growing concern. “The tariffs, of course, are causing some disturbances and some uncertainties,” Pompei noted. “The effect of the tariff will be visible in quarter two. This will require... a lot of discipline from our side.”
Despite this, the CEO sees strategic upside: “The US market is today importing more than 50, actually 60 percent, of the tyres that are sold in the US. Obviously, for us, having a direct presence in Dayton can represent an extremely good element to play in the near future if the tariff remains there.”
Long-Term Outlook: Growth with Leaner Cost Structure
While the company posted a Q1 operating loss, executives remained firm on long-term financial targets: €2 billion in annual sales, a 15 percent EBIT margin, and 23–25 percent EBITDA margin. “Those are all intact, and that’s what we believe in,” said Haavisto.
Pompei summarised the strategic vision: “We want to play in the profitable niches of the market, which today are winter tyres... all-season... and heavy tyres as well. Those are extremely profitable niches.” He added, “We are a small player... and of course, we are still a small market player when we look at the global tyre market, which is approximately €250 billion. We have plenty of opportunities to grow.”
On capital structure, the company expects net debt — now around €800 million — to peak in Q3 before tapering off. Liquidity remains “on the safe side,” supported by a commercial paper programme and committed credit lines.
“We are working very hard, really, to deliver growth and at the same time to improve our financial position,” Pompei said. “We can really position Nokian Tyres growing above the market level with our unique value proposition — safe and sustainable, and high-performing products in demanding weather conditions.”
CEAT Anchors Global OHT Strategy With $171 Million Sri Lanka Investment
- By TT News
- August 25, 2025
Sri Lanka has secured a pivotal USD 171 million investment from CEAT OHT Lanka, marking a major advancement for its manufacturing and export sector. This substantial commitment, formalised through an agreement with the Board of Investment of Sri Lanka, stands as one of the most significant recent Indian investments in the country and is set to position Sri Lanka as a premier global hub for off-highway tyre (OHT) production.
A cornerstone of the agreement is a tripartite commitment to workforce stability. A memorandum of understanding between CEAT OHT Lanka, Michelin Lanka and the Inter-Company Employees Union guarantees job security for all 1,483 existing employees. This ensures the full retention of their seniority, salaries and benefits, explicitly ruling out any retrenchments and providing seamless continuity throughout the operational transition.
The project follows CEAT's strategic acquisition of Michelin's Construction Compact Line Business, which includes key manufacturing plants in Midigama and Kotugoda. This move grants CEAT complete global ownership of the Camso brand, cementing its role as a leading international player in this high-value industrial segment.
Arjuna Herath, Chairman, BOI, said, “We welcome CEAT’s significant investment into Sri Lanka, which is among the largest investments from India in recent times. This approval underlines our confidence in CEAT’s vision and will further elevate Sri Lanka’s position as a global manufacturing and export hub.”
Amit Tolani, Chief Executive, CEAT Specialty, said, “BOI’s approval for CEAT OHT Lanka marks a new chapter in our partnership with Sri Lanka. With CEAT’s vision of expanding our global off-highway tyre business, we have great plans for this country. This investment will bring exciting new opportunities for Sri Lanka while playing a central role in our future growth.”
Kumar Subbiah, Chief Financial Officer, CEAT Ltd, said, “Our immediate priority is ensuring a seamless transition while safeguarding jobs and strengthening our operations in Sri Lanka. This investment reaffirms CEAT’s long-term commitment to our employees and to building Sri Lanka as a world-class hub for OHT manufacturing and exports.”
Rubber Board Announces 2025 Subsidy Scheme
- By TT News
- August 22, 2025
In a move to promote rubber cultivation, the Rubber Board of India has announced a new financial aid scheme for 2025. Growers in non-traditional regions are now eligible to apply for subsidies supporting both new planting and re-planting initiatives. The application process is exclusively online through the ‘service plus’ portal on the Board’s official website, with a submission deadline of 31 October 2025.
To complete their application, growers must provide digital copies of essential documents. These include land ownership certificates, a rough sketch of the planted area, a copy of their Aadhaar-linked bank passbook and proof of purchasing planting materials from recognised nurseries. Successful applicants will receive financial assistance of INR 50,000 per hectare. For additional information, growers are advised to consult the Rubber Board’s website or contact their nearest regional office, field station, or the Board’s call centre.
Global Tire Recycling Market to Hit USD 8.9 Bln by 2029 on Sustainability Push – MarketsandMarkets
- By TT News
- August 22, 2025
The global tyre recycling market is forecast to grow to USD 8.92 billion by 2029 from USD 7.44 billion in 2024, driven by mounting volumes of end-of-life tyres (ELTs), tighter environmental regulations and rising demand for sustainable materials, according to research firm MarketsandMarkets.
The market is projected to expand at a compound annual growth rate (CAGR) of 3.7 percent over the period, the report said.
According to the World Business Council for Sustainable Development, one passenger tyre per person is discarded annually in the developed world, contributing to about 1 billion ELTs globally each year. A 2022 study in ScienceDirect estimated some 4 billion ELTs are already stockpiled worldwide, a figure expected to reach 5 billion by 2030.
“The mass piling of 1 billion ELTs per year to be expected to reach 5 billion by 2030 calls for an ever-increasing process of recycling tyes in a more sustainable means of waste management,” the report noted.
MarketsandMarkets said demand is being spurred by both environmental concerns and industry adoption of new recycling technologies aimed at reducing landfill volumes while maximising material reuse.
Rubber is set to remain the most dominant recycled by-product, with applications in crumb rubber, rubberised asphalt, playground surfaces and sports fields. Mechanical shredding, described as the most cost-effective and scalable method, will continue to lead recycling processes due to its wide applicability in construction, energy and automotive sectors.
Construction is expected to be the largest end-use industry, as recycled materials such as crumb rubber are increasingly used in road building and green infrastructure projects.
Asia-Pacific is projected to remain the biggest consumer of recycled tye products during the forecast period.
Key players in the sector include Liberty Tye Recycling (US), GENAN HOLDING A/S (Denmark), ResourceCo (Australia), GRP Ltd (India), Lehigh Technologies (US), Entech Inc (US), Emanuel Tye (US), BDS Tye Recycling (US), Contec (Poland) and CRM (US).
Global TPMS Market to Edge Up to 71.4 Mln Units by 2030 – Research and Markets
- By TT News
- August 22, 2025
The global market for Tyre Pressure Monitoring Systems (TPMS) is projected to grow modestly over the next five years, with volumes rising from an estimated 68.9 million units in 2025 to 71.4 million units by 2030, according to a report published.
The “Sector Innovation Report: Tyres and Wheels Q2 2025”, released by Research and Markets, forecasts a compound annual growth rate (CAGR) of 0.7 percent for the TPMS market.
The study synthesises data from multiple sources and provides an overview of the tyres and wheels sector, highlighting recent developments, patent activity, job trends and regional growth prospects.
The report identifies opportunities for auto manufacturers and suppliers to refine sales and marketing strategies, noting growing demand for detailed, region-specific data.
Key sections include an analysis of patent filings by region and country, sector forecasts across five geographies – Asia-Pacific, Europe, the Middle East and Africa, North America and South America – as well as profiles of leading component suppliers.
The report also tracks job listings and advertising activity in the sector, broken down by geography, occupational category and level of seniority.
Companies covered in the report include Bridgestone, Continental, Goodyear, Michelin and Hankook.
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