As the war in Ukraine continues, Nokian Tyres plc is taking initial steps to invest in more tire production capacity in Europe. At the same time, President and CEO Jukka Moisio says the tiremaker is looking for “additional capacity.”
In a recorded video released alongside documents for the company’s upcoming annual meeting, Moisio talked about the situation in Ukraine, and how it’s affecting the company’s tire production in Russia.
“We have suspended all investments in Russian production, and we are no longer supplying heavy tire products to Russia. We are working to increase our production rapidly in Finland and the United States, and looking for additional capacity. Additional measures will be taken as necessary. Above all, however, we wish for peace.”
Asked for details about the company’s search for production capacity elsewhere, Nokian’s public relations team in the U.S. said it wasn’t able to provide specifics.
But the U.S. officials noted in 2021 Nokian nearly doubled its workforce at the company’s plant in Dayton, Tenn., from 175 to 325 employees, “and we continue to increase production volume there this year.
“This is in line with our existing plan to grow production in North America and reduce our reliance on overseas manufacturing. In the future, we plan for all tires sold in North America to be made at either our Nokia (Finland) or Dayton (U.S.) factories.”
In the meantime, Nokian has taken the first step — a financial move — to boosting its production in Europe.
The company has decreased the dividend it planned to pay investors for 2021 results — from 1.32 euros per share to 0.55 euros per share.
