I don’t know about the stages of the permit processes, but this is a different project. The building permit you mentioned concerned expansion construction on the factory site itself, whereas this logistics center expansion is on a different plot. So, many kinds of projects/plans are underway. This is naturally understandable, as Nokia is now (and in the foreseeable future) aiming for 5+ million tires in annual production, when before losing the Russian factory, it was roughly half of that. And capacity has also been increased over the years on the Heavy Tires side.
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This leasing option sounds like a sensible choice in this situation, now that there is a lot of debt and revenue is expected to rise to 2 billion.
After the lease period ends, NR can probably buy the property from SEB Leasing at residual value? The plot of land belongs to NR, doesn’t it?
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Yep. The factory is outlined in yellow at the bottom of the map, and the warehouse/logistics center is outlined in green at the top of the map.
In addition, Tyres has acquired more land areas (if I remember correctly, about 5 hectares) immediately to the left of the factory (red), for which plans are also likely underway.
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Director of Logistics at Nokian Tyres [Miikka Kunnari] responds via email
A highly automated warehouse for passenger car tyres is being built in Nokia.
“A state-of-the-art tyre warehouse equipped with high technology was completed at Nokian Tyres’ Russian factory in 2021
The automated tyre warehouse enables efficient loading and storage of tyres, as well as automatic identification of storage locations and shipments for individual products. The uniqueness of the new automated warehouse is that all tyres are stored upright, without additional packaging, and the storage unit is a single tyre, not a cage or a pallet. The new technology allows the storage capacity of the area to be increased 2.3 times compared to the traditional method.”
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A notice had arrived in my email today at 10:00 AM 
Nokian Tyres’ New Factory in Romania Begins Tyre Deliveries
Nokian Tyres Plc Press Release March 28, 2025 at 10:00 AM
Nokian Tyres begins tyre deliveries from its new factory in Romania. The first deliveries, via Nokian Tyres’ distribution centers to Central European customers and consumers, are winter and all-season tyres. The factory is strategically located close to consumers and customers in Central and Southern Europe, and it primarily focuses on manufacturing passenger car tyres for these markets. The factory is the world’s first full-scale carbon dioxide-free tyre factory and utilizes the latest technology in tyre manufacturing.
“Tyre deliveries from our factory in Oradea, Romania, began this week. The first truck loaded with tyres manufactured in Oradea left the factory to transport the tyres to our distribution centers and later to our customers and consumers in Central and Southern Europe. The factory, which is the world’s first full-scale carbon dioxide-free tyre factory, strengthens our ability to serve our consumers and customers in Central and Southern Europe and beyond, and supports our growth.
Achieving this milestone in less than two years since the groundbreaking of the factory is a significant accomplishment for us, and I am extremely proud of the Nokian Tyres team, who have worked hard to make this possible. I also want to thank all our partners and the Romanian authorities who have helped us along the way,” says Paolo Pompei, President and CEO of Nokian Tyres.
First New Tyre Model Range to be Manufactured in Romania
The company recently launched the Nokian Tyres Seasonproof 2 tyre, which is the first passenger car tyre range to be manufactured at the Romanian factory. Sizes for modern passenger cars, SUVs, and crossover models in the all-season product range will be available to Central and Southern European consumers by autumn 2025. The tyre offers top-class safety on snowy and slushy surfaces, as well as performance and smooth driving in summer. Nokian Tyres Seasonproof 2 contains up to 38 percent renewable, recycled, and ISCC PLUS certified materials*. The tyre is the company’s first commercially produced product where such a large proportion of raw materials are renewable and recycled. In the coming months and years, the company will launch new products manufactured in Romania for Central and Southern European motorists.
Nokian Tyres factory in Oradea, Romania
Award-winning factory
The groundbreaking ceremony for the Romanian factory was held in May 2023, and the first tyre was produced at the factory in July 2024. Since then, the factory has already been honored with three prestigious awards:
- Award for Environmental Achievement of the Year, Industry Contribution at the Tire Technology International Awards for Innovation and Excellence 2025
- Business Review’s Award for the Most Impactful Investment in Romania 2025
- Industry Tomorrow’s Responsible Manufacturing in Romania 2025 Award, in Romania
A Team of Over 500 Professionals
The Romanian factory is the company’s third production facility, in addition to the factories located in Nokia and Dayton, USA.
Nokian Tyres is running a recruitment campaign in Romania, particularly in Bihor County, to attract skilled labor. The factory employs approximately 300 people. The recruitment process continues, and the total number of employees is estimated to be around 500 when the factory is at full capacity.
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And @Rauli_Juva is also awake, here are the comments related to the matter: Nokian Renkaat: Uusi Romanian tehdas aloitti rengastoimitukset - Inderes
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Nokian Tyres unbothered by President Trump’s auto tariffs. Here’s why.
Oli tuolla toisella foorumilla jaettuna tällainen uutinen Nokian renkaista, Pompein ajatuksia että ei vaikuta merkittävästi tullit Nokian renkaisiin koska renkaiden valmistus USA:ssa.
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The article also mentions the strong export of the US factory to Canada. Where will those tires be sold if trade in that direction is disrupted? How does inflation caused by tariffs affect US demand?
And then, of course, a further consideration: if the sales of US factories to North America are disrupted and tires are exported to Canada from Europe, what kind of challenges does that pose for the capacity of different production units?
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There might be a similar kind of rush as Soomi-Vyborg was back in the day. So, people drive to another country with slick tires and have affordable tires installed and drive back. At the same time, they bring vodka, Vichy water, and pickled cucumbers. From the Americas, I don’t know what Canadians bring, iPhones? Put up a fence, and people and goods will just go around it from somewhere else.
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Here’s another new article:
At least there’s strong confidence in the work. Good, good.
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In short, tariffs are a lottery win for Nokian Tyres. It’s worth checking which company’s stock has risen the most on the NYSE main list today and for what reason. Car tires are imported into the US for about 20 billion annually, and key competitor countries were just slapped with 24-46% additional tariffs. Nokian Tyres’ competitiveness and pricing power will almost certainly improve in the US market if the tariffs remain in effect.
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I wouldn’t exactly call it a lottery win, given the challenges of weakening consumer confidence, potential challenges in Canadian exports, etc.
OP wrote today in its review The Effects of Trump’s Tariffs on Domestic Companies: “For Nokian Tyres, the impact is, in our assessment, relatively neutral. The company has local production in the United States, but it exports some winter tires to the United States from Finland. In our understanding, most competitors have both local production in the USA and imports into the market.”
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You can call it whatever you want, but this will be a lottery win in any case, when talking about a significant improvement in market competitiveness.
I wouldn’t be too worried about consumer confidence, because car tires are a necessity that must be replaced when the previous ones have reached the end of their life. The price of cheap tires will rise significantly, and Nokian Tyres, as a mid-range tire, will immediately benefit from this development. The Canadian market is an insignificant lilliput compared to the United States, and in the future, it is likely that sales in the main market will grow so much that the entire factory capacity can be sold to the US market if desired. In addition, all winter tires sold to Canada have so far been made in Finland, meaning any potential Canadian counter-tariffs would apply to the North American all-season range, which is not made outside the US. There is no information yet about counter-duties, but I would consider Canada’s comprehensive or car tire-specific tariffs quite unlikely.
And as for OP’s analyst views, I, for one, trust Mr. Market more, who states today that, especially in car tire manufacturing, factory capacity in the United States will significantly increase the manufacturer’s profitability.
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One can certainly convince oneself, if one wishes, that now suddenly tires of a relatively unknown brand are flying off the shelves in the United States and everything is fine. Just as one can believe that consumers’ tightening purchasing power would not affect the price-driven nature of sales.
The Canadian market is no small fry for Nokian Tyres, and the factory in the United States is intended to produce tires for those markets as well. Time will tell whether that goal can be pursued without disruption. If that production is replaced by European production, it is not entirely unproblematic when considering the optimal meeting point of the company’s various factories’ production and markets.
One can indeed believe in Mr. Market, and Nokian Tyres’ stock was down about three percent today. Let’s look at the new figures again tomorrow, if one wants to stare at daily stock prices. In my opinion, the big story hasn’t changed, but certainly, at least in the short term, new challenges have arisen for NR as well.
Fundamentally, there are remarkably few winners in these trade wars and tariffs.
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Message merged into topic: Queries, complaints, and praises about courses and their changes (Part 3)
As is your custom, you repeat your own erroneous claims, ignoring all arguments presented to you earlier. This is, of course, nothing new, but it makes the discussion extremely difficult.
In any case
-Nokian Tyres’ relative competitive position improves sharply as many competitors face 24%-36% punitive tariffs. This is emphasized when consumer confidence is low.
-No disruptions are visible in Canadian sales. Winter tires have been sold from Finland until now. And the market size is, of course, negligible compared to the potential of the United States.
-The market does not value Nokian Tyres based on its future earning potential in the US, at least not currently, as analysts have not yet understood what is happening. Valuation differences will likely correct once the situation stabilizes.
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Of course, it’s pointless to argue with you, but for the benefit of fellow discussants, I’d like to remind that CEO Paolo Pompei has just recently spoken about preparing for potential disruptions in the supply chain to Canada. “Nokian Tyres has a flexible supply chain, so if Canada cannot be supplied from the United States, it will then be supplied from Europe,” was the CEO’s comment, freely translated. So, risk analyses are clearly being conducted.
In the same interview, Pompei emphasized how the sales from the U.S. factory are built upon North American distribution, including significant exports to Canada. This is despite the fact that winter tires are exported from Finland to Canada.
Nokian Tyres is not the only tire factory operating in the United States, and it still has a long way to go in terms of brand recognition. Production alone does not bring sales. This, in particular, should be understood if one advocates for understanding consumer companies.
Instead of seeing markets and analysts as wrong and indulging in wishful thinking, one should seriously consider the company’s challenges and risks. This applies to every investment target, as Nokian Tyres is no special case here. And especially, one should abandon the “tariffs are a lottery win for Nokian Tyres” wishful thinking. The antics of a peculiar blonde-haired individual cause trouble and distress for various companies and weaken the business environment.
But I suppose this is enough from my part for now.
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You largely used your previous messages and half of your last message to rant about challenges in Canadian exports that you apparently invented yourself. Could you please tell me what the known challenges in Canadian exports are now? And how do they relate to this discussion in any way?
Today’s news and my own comments are not about Canada, nor am I aware of any changes regarding it in recent days. As for the United States, Nokian Tyres’ competitiveness has significantly increased, and in my opinion, this is the biggest news for Nokian Tyres this week. The market is large, imports have been enormous, and production within the tariff wall will inevitably gain a significant competitive advantage in the future.
In the United States, just under 40% of aftermarket tires are imported from abroad. When new import duties of 24-46% are slapped on these from the main importing countries, the general price level of tires will almost certainly rise, and the profitability of factories operating within the tariff walls will improve simultaneously. Probably, the volumes at these factories will also increase, which further improves the profitability of factory production. Nokian’s Tennessee factory capacity has been less than 2% of aftermarket demand. In these changing competitive conditions, it should not be particularly difficult to sell the factory’s capacity to full in its domestic market with better profitability than before.
I haven’t owned Nokian Tyres shares for a long time, but I might consider it in light of the latest news. This is not, of course, some dream fluff, but rather basic principles of national economics and industrial economics, which, in light of current information, both support Nokian Tyres’ positive profitability development in the US market.
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American rubber farmers are making a fortune as bagels will soon be boiled in four shifts in Dayton.
Dayton’s raw materials come from Asia, especially Malaysia and Indonesia. Some have also passed through European ports. IF tariffs remain in effect and also apply to, for example, rubber, production costs will rise, at least concerning raw materials. Inflation will rise and purchasing power will erode, and because of these, I assume that it is the mid-price point that suffers the most. The rich buy no matter the cost, the poor buy the cheapest.
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Indeed, an interesting and multi-layered situation is now emerging. It’s difficult to assess how this will play out and what the final outcome will be – and how competitive landscapes will be shaped along the way.
Nokian Tyres has been struggling at the bottom of a muddy pit for a few years and has been building ladders out of it. I find it hard to see a negative scenario bringing much more harm compared to the potential good that has been built upon in recent years. In my own radar, the “risk/reward” turns attractive even amidst the tariff chaos, which is why this is still in my portfolio.
Q4/2025 is crucial for me; if it still goes south despite Romania, Sissi’s patience will run out. Expectations for a proper turnaround are so high specifically at that point that it simply has to hit the mark, otherwise, there will be no glory.
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