why invest in US

Nokian Tyres is investing in profitable growth and is committed to delivering sustainable long-term shareholder value. Innovation, sustainability, and the strong Nokian Tyres brand are the key drivers of the company’s success.

Nokian Tyres is the market leader in premium car tires in the Nordics and is pursuing significant growth in North America. The third key market is Central Europe. In addition to passenger car tires, the company is one of the leading manufacturers of special heavy tires for segments such as forest and agricultural machinery. The Vianor tire retail chain supports the company’s growth strategy by ensuring strong distribution in the Nordics.

Nokian Tyres’ growth strategy builds on the company’s core strengths. These include high-quality products, a premium brand, an effective supply chain, leadership in sustainability and the strong Nokian Tyres team. Innovation has been a key driver of the company’s success ever since the invention of the first winter tire almost a century ago. Safety and sustainability are the guiding principles in product development. In the coming years, EV tires and tires produced from renewable or recycled materials will play an increasingly important role in the product portfolio.

Investing in growth with a diversified manufacturing footprint

Nokian Tyres’ production facilities in Finland and the U.S. are among the most efficient and productive factories in the tire industry. The company is finalizing capacity expansions in both of its factories. In addition, Nokian Tyres is building new production capacity for passenger car tires in Oradea, Romania, to serve especially the Central European markets from 2025 onwards. As a whole, the diversified production network will enable the production of 15+ million passenger car tires in 2027. The company’s own production is being supported by carefully selected contract manufacturing partners.

Strong cash generation and healthy returns to shareholders

Nokian Tyres has a strong financial position and a high equity ratio. The company generates strong cash flow with its premium niche business model, prioritized investments and careful working capital management to deliver healthy returns to its shareholders. Nokian Tyres prioritizes capital allocation on organic growth, returning cash to shareholders through dividends, and share buybacks. With its financial strength and strong cash generation, Nokian Tyres is well positioned to deliver sustainable growth and long-term shareholder value.

Ambitious growth targets and attractive dividends

Nokian Tyres’ long-term growth targets include reaching EUR 2 billion in net sales, segments operating profit at the level of 15% and net debt/segments EBITDA ratio of 1–2. The company’s dividend policy is to pay a dividend of at least 50% of net earnings. Nokian Tyres has a strong track record of delivering sustainable dividends. With a solid balance sheet and strong cash generation, the company is able to invest in growth while keeping its dividend policy unchanged.

Sustainability at the core of the business

Nokian Tyres is committed to continuing as the forerunner in sustainability in the industry and has set non-financial targets in addition to financial targets. The company’s sustainability targets include increasing the share of recycled or renewable raw materials by 50% and reducing its greenhouse gas emissions from production by 50% by 2030. In the long term, the company is committed to further reducing greenhouse gas emissions, aiming to achieve the Net-Zero Standard by 2050. To reach these targets, Nokian Tyres, for example, invests in the new factory in Oradea, which will be the industry’s first zero CO₂ emission factory, and continues its work on reducing the environmental impacts of tires throughout their entire lifecycle, from raw material sourcing to product recycling.

Find out more about Nokian Tyres' growth strategy here.