First, I state that I am not a shareholder of Nokian Tyres, yet.
I have been following this forum alongside Tyres for about a couple of years, and at least on the forum, there is strong belief in Tyres’ success; at least in the last decade, it was a success story…
OP’s forecast for production capacity raises the question for me: is it possible for Tyres to achieve the revenue target of 2 billion €/year by 2028?
What does the forum think, is the aforementioned target realistic to achieve profitably this decade?
Nokian Tyres was among a hundred global companies when companies for sustainable development were chosen. What was even better was that Nokian was the second most responsible tire manufacturer, with only Pirelli ahead.
Interesting. It hasn’t been long since the company was caught improving tire test results by questionable means, for which the company apologized. Was there also some tax scandal, I don’t remember. Furthermore, a cartel suspicion recently emerged (note: only a suspicion).
I am not familiar with the criteria for this sustainability comparison, but generally these ESG-related reports and policies seem to be such “writing competition fluff,” where people compete over who can compose the finest promises on paper.
So the question is about companies that take the most measures in their operations to slow down climate change. This includes the use of green energy, waste reduction, material recycling and reuse, logistics… The study has long been conducted by TIME magazine and the statistical data company Statista. In my opinion, a company cannot simply talk its way to the top.
Nokian Tyres’ test fraud is a matter from 10 years ago, and at the same time, tire giant Continental was also caught. I would say that both have learned from them. The EU Commission is still investigating cartel suspicions, and Continental, Pirelli, and Michelin are part of the same investigation. The investigation is still ongoing.
It was also about a naive press that didn’t buy tires but begged for them directly from the manufacturer. Tire manufacturers know the properties and behavior of other manufacturers’ products very well, and if the magazine’s results don’t match their own observations, a justified suspicion arises that the competitor has not supplied the same quality for tests as what is available for purchase in stores. Only a foolish manufacturer would give a competitor an advantage in tire tests.
Practices have now changed as test tires are acquired from consumer sales.
I understood this. My main point was that responsibility is more than just slowing down climate change. In my eyes, responsibility is measured by how a company acts towards various stakeholders, customers, personnel, society, investors, etc. in the long term.
But no more about this. I also have quite a lot of Nokian Tyres in my portfolio, but I certainly don’t consider this anywhere near the most responsible company in my portfolio.
I spotted a brand new Pasi on a truck trailer at a gas station. The gigantic tires immediately caught my attention, and I decided to take a cool picture of them for the enjoyment of the forum members here.
But they were Michelin (miseliinit) tires after all, so much for that. I quickly found one IS article online, which also had Michelin (michelssonit) tires, so it might be a common solution for Pasis. Solidium could actually sell its shares, as it can’t arrange for domestic tires in domestically owned companies for domestic armored vehicles ; ) Paolo, however, thinks the defense sector is significant, so I guess these factors have been discussed…
The stock itself has been popular with domestic investors in June, including myself:
About 100k shares have gone to private individuals, and funds have mostly increased their holdings too.
My guess is that Q2 and maybe Q3 will still be sluggish.
Based purely on guesswork and gut feeling.
The first deliveries from the Romanian factory were probably in March (2025) and full capacity according to Nokian Tyres in 2027. Still this year Capex 200m €
Additionally, markets can be won mainly by price, and traditionally Q4 is by far the best quarter.
For example, it took UPM a couple of years to “ramp up” its newest pulp mill.
One could almost say, as “unofficial information,” that it is sluggish. Q4, on the other hand, should show a significant improvement when the Hakkapeliitas produced in the summer and autumn are sold to Nokian’s hungry customers in the first winter tire season after Romania’s launch.
And since it’s known that the stock market anticipates it by about half a year, it’s probably to be expected that it will start to show in the stock chart at the latest by the end of summer.
That Q4 is a point of return for me; if the results don’t come through then, the shares will be sold without question.
