Nokian to Focus on Top-Line Growth, New Products
Nokian Tyres plc says "driving top-line growth" will be its top priority. "We want to ensure that the innovation pipeline in passenger car tires and heavy tires is strong and that we continuously launch new tires that meet consumer and customer needs," says Nokian President and CEO Jukka Moisio.
"We have a record number of new product launches planned for the coming months, which will be a key driver for boosting sales."
Moisio says that Nokian's "penetration is still low in certain markets, so a lot more work needs to be done in expanding distribution, commercial marketing and convincing customers."
Nokian is continuing to ramp up production at its plant in Tennessee. And the company plans to "maximize production" at its manufacturing facility in Russia. (Nokian's plant in Finland remains the company's "key location for R&D, prototyping, testing and manufacturing of more specialized tires.")
The company's manufacturing "investment phase is starting to be behind us," says Moisio, "which will further support our free cash flow generation. Now we need to make sure that we benefit from these investments in the best possible way. The capacity and capability available will help us increase sales once the market rebounds.
"In this volatile market environment, our focus in the second half of 2020 is tactical. A more thorough review of our longer-term growth strategy will take place once the market is stabilized."