Nokian Tyres PLC (Finnish: Nokian Renkaat Oyj) is a Finnish based manufacturer of tyres for cars, trucks, buses, and heavy duty equipment. Nokian is also known for its winter tyres. It is the largest manufacturer of car tyres in the Nordic region and also produces tyres in other countries. The Nokian name is also used by Suomen Kumitehdas, which purchased the Nokian bicycle tyre business in 2004.
The company has a long lineage, with corporate roots as a pulp mill in the Nokia, Finland area and later merging with a tyre company. The company headquarters and main factory is located in Nokia, Finland. The company also sells tyres and performs car servicing on the retail level through its Vianor subsidiary.
History
The predecessors of the modern Nokia corporate entity includes the Nokia Aktiebolag (Nokia Company) and Suomen Gummitehdas Oy (Finnish Rubber Works Ltd).[2] In 1865, mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland.[3] In 1868, Idestam built a second mill near the town of Nokia, Finland, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydroelectric production. In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his mills into a share company, thereby founding the Nokia Company.[4]
Suomen Gummitehdas Oy was founded in 1898. Car tyre production was started by the Suomen Gummitehdas Oy in 1932. The Hakkapeliitta tyre name was started in 1936[5][6] and some tyres sold under the Nokian tyre name still use the Hakkapeliitta model name.[7] Hakkapeliitta (Finnish pl. hakkapeliitat) is a historiographical term used for a Finnish light cavalryman in the service of King Gustavus Adolphus of Sweden during the Thirty Years' War (1618 to 1648).[8]
In 1967, Suomen Gummitehdas Oy (which, by then, had changed the corporate name to Suomen Kumitehdas Oy) merged with both Suomen Kaapelitehdas (Finnish Cable Works) and the forest and power industry company Nokia Aktiebolag to create Nokia Corporation.[9] Nokian (which were earlier branded as Nokia tyres; Nokian is the genitive) was split from the then conglomerate Nokia (which later became the world's largest mobile phone vendor) when Nokia Corporation established Nokian Tyres Limited in 1988 as a joint venture company. Nokian Tyres PLC shares were floated on the Helsinki Stock Exchange (OMX Helsinki) in 1995. Nokia ended its ownership interest in Nokian Tyres in 2003, selling its shareholding of 2 million shares to Bridgestone Europe NV/SA, a subsidiary of the Japanese tyre manufacturer Bridgestone, for U.S. $73.2 million.[10] This made Bridgestone the largest shareholder, with a 18.9% stake,[5] later diluted to 16.8%.[11] Bridgestone announced then that Nokian would be operated independently, but would consider complementing each company's product development, testing, and distribution.[10]
Production of bicycle tyres and inner tubes started in 1974 in Lieksa, Finland[5] and continues at the present time.[12] In 2004, Nokian Tyres sold its bicycle tyres business to Suomen Rengastehdas Oy[13][14] for EUR 3.6 million.[15] Suomen Kumitehdas continues to produce bicycle tyres, including all Nokian branded bicycle tyres.[16]
In 2007, Nokian began a joint venture, Ordabasy - Nokian Tyres JSC, with Ordabasy Corporation JSC, a multi-industry Kazakhstani company to manufacture passenger car tyres at a planned new factory in Kazakhstan. Nokian was to bring technical expertise to build a tyre factory and to produce tyres. The products were to be sold in Kazakhstan, Central-Asia, Russia and Eastern Europe.[17][18] In 2009, the Hakkapeliita tire line produced by Nokia received "List of trademarks with a reputation" status by the National Board of Patents and Registration of Finland.[19][20]
Current financial situation
Nokian Tyres' three principal activities are the manufacture of passenger car tyres, heavy commercial tyres, and retail tyre sales.[21] Nokian Tyre currently has the highest profit in the tyre industry worldwide[22][23] at up to 18% earnings as compared to sales before taxes and interest, compared to 14% at Bridgestone, 8% at Michelin, and 9.6% at Continental.[11]
In 2008, Nokia achieved €168.9 million profit on sales of €1.081 billion.[1] Nokian has experienced strong revenue growth of 18% annually in the 2003-2007 period.[24] Nokian Tyres is also publically traded on the Berlin Stock Exchange.[25] Mr. Kim Gran is the President and Chief Executive Officer[26], having served since 1 September 2000 and having been a Vice President in the company for five years previous to that time.[27][28]
Tyre facilities
Nokia, Finland production and testing facilities
Nokian produces 23,000 tyres per day at a factory in Nokia, Finland, 200,000 tyres a year under the Bridgestone brand name.[29] The original factory was built in 1904. The current factory was built in 1945. It has been expanded several times since then.[5] Nokian has 27 assembly lines at its Finnish plant.[30] The plant uses radio frequency devices to monitor the inventory of materials used to make tyres, such as the 100 metre long strips of rubber tread. While shortages of stocks of rubber tread can halt production, keeping an adequate, but not oversupply of materialsr tire production equipment increases efficiency. Although reported in trade journals, Nokian declines to confirm these production methods.[30]
The company also has a 30 hectares road testing facility in Nokia, where it tests tyres from April to November. From November to May, the company tests tyres at their Ivalo Proving Grounds in the arctic Lapland.[31] The Ivalo Proving Ground is the only permanent winter tyre testing facility in the world.[29] Because of the short summer duration in Finland, Nokian tests summer tyres at other locations. During the northern winter, the testing of summer tyres is performed in South Africa.[32] Nokian also tests tyres in Idiada, Spain, and Papenburg, Germany.[32]
Vsevolozhsk, Russia factory
Nokian produces approximately 6,000 tyres daily and employs 510 employees at its factory in Vsevolozhsk, Russia near the city Saint Petersburg and plans to increase manufacturing capacity to 10 million tyres annually by 2011.[33][34] The factory was established in 2005.[34] In 2006, it expanded its facilities there, adding a mixing department and a 19,000 square metre warehouse capable of housing approximately 600,000 tyres. The new mixing department gives the factory the capability to produce rubber compounds instead of importing them from the factory in Nokia, Finland. The Vsevolozhsk factory manufactures Nokian-branded car tyres, the majority of which are sold in Russia and countries of the former USSR.[35] Nokian plans to build 300 housing units and sell them to employees at cost as part of the Russian factory expansion that is schedule to be completed by 2011.[36]
Contract production
Nokian licenses production of its tyres to companies in the United States (Bridgestone, LaVergne, Tennesee plant)[29], Slovakia (Matador, Puchov plant)[37], Indonesia (PT Gujah Tunggal Tbk company)[38][39], and the People's Republic of China (Giti Tire)[40][41], as well contract manufacture of agrigiculture and industrial tyres in Spain and India. In the past, some United States contract manufacturing was done by Cooper Tire's Findley, Ohio plant. Some Nokian agricultural and industrial tyres were made under contract by the Tofan Grup in Romania for two years until December 1999, when Nokian withdrew citing quality standards. Contract manfacture of these types of heavy tyres was then begun by Michelin at its Polish plant in Stomil-Olsztyn from 2000[42] until 2005, when it started to shift contract manufacture of industrial tyres to Bridgestone's Bilbao, Spain factory and agriculture tyres to Balkrishna Tyres Ltd, an Indian company, in Bhiwadi, India.[43]
Products
Nokian Hakkapeliita 4 winter tyre with metal studs
Passenger car tyres
Nokian produces tyres for passenger cars, SUVs, and vans.[44] Nokian tyres are sold in over 60 countries.
Nokian Tyres designed the first winter tyres in the 1934 and has more winter tyre patents than any other manufacturer.[45][11] Nokian is known for its winter tyres[23][46], not to be confused with all-season tyres.[47] Nokian winter tyres have been described as a critics' favorite[48] and have been received favorable winter test results by several publications.[49][50][51] Nokian also has designed some winter tyre models with low rolling resistance which results in less fuel consumption/better gas mileage.[45][48] Nokian was the first company to design a tire with half the tread with a winter tire pattern and half with an all season pattern to allow for year round use.[52] Nokian produced tires made in the Nokia, Finland plant have a DOT code beginning with "YL".[53]
Nokian tyre demand is seasonal but the company has improved the extent of the fluctuations.[54] According to the company, more than 80% of its passenger car and van tyre unit's sales are winter tyres. Winter tyre sales have a strong seasonality characteristic with 30% of retail sales occuring in the ten days after the first snowfall, thus presenting challenges in production and delivery. [1]
Nokian does not sell to automobile manufacturers but, instead, concentrates on the more profitable tyre replacement market and premium snow tyre market.[22] Nokian has the highest market share of the Finnish passenger car tyre market. The Finnish, Swedish, and Norwegian markets contribute to over 40% of Nokian's corporate net sales in 2008 with the Russian market, Nokia's largest market[11], contributing to 34% of the net and capturing 26% of the Russian winter tyre market[11]. In 2007 and 2008, the North American market accounted for 7% of the companies net sales.[1]
Nokian Tyres is the first tyre manufacturer in the world to have fully eliminated high-aromatic oils, which are used as plasticising agents in tread production and facilitates compounding of rubber and contain polycyclic aromatic hydrocarbons (PAHs) which is a carcinogen. Low aromatic oils have been used as replacement compounds.[55] In 2006, Nokian Tyres received a commendation in the Finnish round of the European Business Awards for the Environment.[56]
Commercial vehicle tyres
Nokian manufactures truck and bus tyres under the Nokian Hakkapeliita name.[57][58] Steer, traction, and trailer tyres are marketed.[59] Nokian Heavy Tyres Ltd is a manufacturer of special tyres for forestry, industrial machinery, and agriculture. Its products are sold as original equipment as well as the replacement tyre market. Forestry tyres are a key product of the subsidiary and is a world market leader.[60]
Nokian also produces retreading materials. These are used to retread and refurbish used tyres. Nokian Noktop and industry competitor, Kraiburg, produce the most retreading materials for the European market.[61] The RoadSnoop Pressure Watch, a tyre pressure monitor for race cars, is also produced by Nokian.[62]
Vianor tyre chain
Nokian Tyres owns 100% of Vianor Holding Oy,[63][64] which administers the Vianor tyre chain, the largest and most extensive tyre franchise in the Nordic countries with approximately 190 company owned retail outlets across Finland, Sweden, Norway, the Baltic countries, Ukraine, Russia and other countries and 470 total outlets, including franchises. Twelve outlets are located in the United States in the American states of Vermont, New Hampshire, New York and Massachusetts.[65] Company owned outlets are located in the United States, Switzerland, Russia, Norway, Finland, Sweden, and Estonia. Countries with only franchised outlets include Latvia, Ukraine, and Kazakhstan.[66] There are also Vianor outlets in Armenia, Slovakia, Czech Republic, and Poland.[67]
Nokian has operated retail tyre stores since 1987 in Norway with the acquisition of Larsen & Lund[66] and since 1998 in Sweden and Latvia.[34] The Vianor name was launched in 1999 at the time of expansion to Finland and Estonia. The Vianor name originates from the Latin phrase “northern way” or "northern road"[66] and reflects the tyre chain's image as a tyre expert in winter conditions.[65]
Vianor sells approximately two million tyres annually including the Michelin and Bridgestone brands, in addition to Nokian tyres. Other car servicing and a tyre hotel service are offered.[68] Tyre hotel services are facilities for customers to store summer or winter tyres during the off-season. [69]
See also
References
- ^ a b c d e f g "Annual Results 2008". Nokian Tyres. http://www.nokiantyres.com/files/nokiantyres/Osavuosikatsaukset_eng/tulos_2008_englanti.pdf. Retrieved 2009-03-09.
- ^ "Nokia – Nokia's first century – Story of Nokia". Nokia Corporation. http://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century. Retrieved 2009-03-16.
- ^ "Nokia – The birth of Nokia – Nokia's first century – Story of Nokia". Nokia Corporation. http://www.nokia.com/about-nokia/company/story-of-nokia/nokias-first-century/the-birth-of-nokia. Retrieved 2009-03-16.
- ^ Helen, Tapio. "Idestam, Fredrik (1838-1916)". Biographical Centre of the Finnish Literature Society. http://www.kansallisbiografia.fi/english/?id=4296. Retrieved 2009-03-22.
- ^ a b c d http://www.nokiantires.com/company-information Expertise in Nordic Conditions], Nokian Tires. Retrieved 2009-11-25.
- ^ Каталог шин фирмы Nokian, Autostok Russia. Retrieved 2009-12-14.
- ^ Nokian Hakkapeliitta R, Tires by web. Retrieved 2009-12-04.
- ^ Hakkapeliittoja ja karoliineja, Helsinki city government. Retrieved 2009-12-08.
- ^ Nokia's first century, 1865-1967, Nokia Connecting People. Retrieved 2009-11-25.
- ^ a b Bridgestone buying share in Nokian Tyres, Tire Business, 3 March 2003. Retrieved 2009-11-26.
- ^ a b c d e Nokian to Expand Via Russian Operations, St. Petersburg Times, 3 June 2005. Retrieved 2009-12-22.
- ^ Town of Lieksa, Lieksan kaupunki. Retrieved 2009-11-25.
- ^ "Nokian Tyres plc Stock Exchange Announcement December 1, 2004 11 am NOKIAN TYRES BICYCLE TYRES BUSINESS TRANSACTION CONFIRMED". Nokian Tyres. http://www.nokiantyres.com/release?id=10343067&year=&group=. Retrieved 2008-12-09.
- ^ Suomen Kumitehdas siirtää alihankinnan takaisin Suomeen, Kauppalehti News, 4 October 2004. Retrieved 2009-12-12.
- ^ This successor company remains one of the few manufacturers of bicycle tungsten carbide studded snow tyres. Nokian sells off tire division, Bicycle Retailer, 6 December 2004. Retrieved 2009-11-27.
- ^ Suomen Kumitehdas, Suomen Kumitehdas. Retrieved 2009-12-18.
- ^ Finland's Nokian Tyres Plc to build factory in Kazakhstan, Nordic Business Report, 19 October 2007. Retrieved 2009-11-24.
- ^ Nokian Tyres to build car tyre plant in Kazakhstan with local company, Forbes, 19 October 2007. Retrieved 2009-12-11.
- ^ Nokian's Hakkapeliitta joins trademark list, Modern Tire Dealer, 17 December 2009. Retrieved 2009-12-26.
- ^ Nokian Hakkapeliitta gains Finnish trademark protection, Tirexpress, 18 December 2009. Retrieved 2009-112-27.
- ^ Nokian Renkaat OYJ - Company Profile Snapshot, Wright Reports. Retrieved 2009-12-08.
- ^ a b Nokian Analysts Prove Wrong as Pirelli Targets Russia, Bloomberg, 12 September 2006. Retrieved 2010-01-06.
- ^ a b High Growth Forecasted for the Global & China Tire Market Report, 2008-2009, Business Wire, 7 May 2009. Retrieved 2009-11-29.
- ^ Premium Company Profile:Nokian Tyres, Research and Markets. Retrieved 2009-12-08.
- ^ Nokian Tyres, Yahoo Finance. Retrieved 2009-12-08.
- ^ [http://www.forbes.com/feeds/afx/2006/03/16/afx2598977.html Helsinki shares slightly higher midday, underpinned by Fortum ], Forbes, 16 March 2006. Retrieved 2009-12-12.
- ^ Kim Gran, Konecranes. Retrieved 2009-12-09.
- ^ ETRMA, Manufacturers Respond Positively to Tyre Labelling Decision, Tire Press, 26 November 2009. Retrieved 2009-12-11.
- ^ a b c New tires symbolize Nokian's worldwide push, Tire Business, 7 November 2007. Retrieved 2009-12-15.
- ^ a b At Nokian Tyres, RFID Keeps Treads on Track, RFID Journal, 22 May 2008. Retrieved 2009-12-31.
- ^ Vinterns däck i höstens tester, Sydsvenskan, 28 October 2005. Retrieved 2009-12-12.
- ^ a b Outdoor Testing, Nokian Tires. Retrieved 2009-11-25.
- ^ Nokian to double output at Russian plant by 2011, Tire Business, 15 February 2007. Retrieved 2010-01-06.
- ^ a b c History in Brief, Nokian Tyres. Retrieved 2009-11-24.
- ^ Nokian Tyres completes second stage of Russian tyre factory, Nordic Business Journal, 22 November 2006. Retrieved 2009-11-24.
- ^ Nokian Tyres to build 300 flats for workers at Russian production plant, Forbes, 17 August 2007. Retrieved 2010-01-06.
- ^ Matador to make tyres for Nokian, European Rubber Journal, 1 February 2003. Retrieved 2009-12-13.
- ^ [http://www.gt-tires.com/indonesia/corporate.asp?classification=12&subid=42 Milestones, PT Gujal Tunggal Tbk Company (Indonesia). Retrieved 2009-12-16.
- ^ Note: Nokian has for a number of years maintained a relationship with Multistrada, an Indonesian tyre producer. See De Klok Holds High Expectations for the New Season, Tire Express, 10 February 2009. Retrieved 2009-12-16. and Result 2004, Nokian Tyre, 11 February 2005. Retrieved 2009-12-16.
- ^ NOKIAN TYRES TO START CONTRACT MANUFACTURING IN CHINA, Europe Intelligence Wire, 28 December 2004. Retrieved 2009-12-13.
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- ^ Nokian Studded Tyre Tops European Magazine Test, TirePress, 23 November 2009. Retrieved 2009-12-12.
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- ^ New Tires Manufacturers Plant Code, Harringer.com. Retrieved 2009-12-31.
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- ^ Purified Oils, Nokian Tires. Retrieved 2009-11-26.
- ^ Nokian Tyres Against Climate Change, Nokian Tires. Retrieved 2009-11-26.
- ^ A new front tyre complements the Hakkapeliitta family for heavy vehicles, Nokian Tyres. Retrieved 2009-11-25.
- ^ Winter tire lessons lost already?, Wheels Canada. Retrieved 2009-12-11.
- ^ Truck and bus tyres, Nokian Tyres. Retrieved 2009-11-25.
- ^ Nokian Heavy Tyres Contact Information, Nokian Heavy Tyres. Retrieved 2009-11-25.
- ^ Trucks tires restoration, Motorida Padangos Profesionalams. Retrieved 2009-12-09.
- ^ Interim Report for Nokian, Reifen Presse. Retrieved 2009-12-08.
- ^ Corporate Governance, Nokian Tyres. Retrieved 2009-11-25.
- ^ Nokian-Reifenhandelskette Vianor will in Deutschland weiter expandieren, Reifenpresse. Retrieved 2009-12-11.
- ^ a b Vianor tyre chain, Vianor (USA). Retrieved 2009-11-24.
- ^ a b c Brief history of Vianor, Vianor. Retrieved 2009-11-24.
- ^ Brief history of Vianor, Vianor. Retrieved 2009-11-24.
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- ^ FAQ, Tire Hotel. Retrieved 2009-12-12.
External links
