Investments and acquisitions
Investments in January−September 2023 amounted to EUR 156.6 million (59.6). To expand its manufacturing footprint and rebuild capacity, the company began work on building a new passenger car tire factory in Romania and continued its actions to increase capacity at the factories in Finland and the US. The construction work at the world’s first zero CO2 emission tire factory in Romania is proceeding as planned. Depreciations and amortizations totaled EUR 84.7 million (81.7).
Investments in 2022 amounted to EUR 129.7 million (119.6). Depreciations and amortizations totaled EUR 154.9 million (140.5). Impairments of EUR 155.7 million (17.0) mainly related to the Russian fixed assets were recorded as part of the Russia exit process.
In June 2022, Nokian Tyres acquired three hectares of land and, in October, an industrial property in Nokia, Finland to secure future development opportunities at the Nokia factory.
In November 2022, Nokian Tyres’ Board of Directors made a decision to invest approximately EUR 650 million in a new passenger car tire factory in Romania - the world’s first zero CO₂ emission factory in the tire industry. The site location in Romania supports this target as there is green energy produced near the site. In addition, Nokian Tyres is evaluating the production processes to find the most sustainable ways to produce tires. The investment is a significant strategic decision enabling the company’s future growth. Construction is scheduled to begin in the first half of 2023 and the first tires are estimated to be produced in the second half of 2024. Commercial tire production is expected to start in 2025. Read more.
Acquisitions and divestments
On March 30, 2023, Nokian Tyres plc announced the completion of the sale of its operations in Russia to PJSC Tatneft. The sale price was EUR 285 million. The closing date of the sale transaction of Russian operations is considered to be March 16, 2023 when the sale price was received. Following the completion of the transaction, Nokian Tyres no longer has any operations in Russia. Read more from our Q1 report and EXIT FROM RUSSIA section.
Vianor US network, including ten service centers, was sold in August 2020. Nokian Tyres' products are offered in the US via selected partners. Read more.
In August 2019, Nokian Heavy Tyres Ltd. acquired Levypyörä Oy, a Finnish heavy equipment wheel company, with annual net sales of approximately EUR 18 million, of which approximately 30% has been sales to Nokian Tyres. Read more.