Nokian Tyres Plc reported strong year-on-year sales growth of 14.2 percent  in the first quarter of 2025, with net sales reaching €269 million in comparable currency, reflecting solid performance across all regions. However, earnings were impacted by rising raw material costs and ramp-up expenses linked to new production facilities.

“We had strong sales growth in quarter one,” said President and CEO Paolo Pompei. “This is continuing our journey and strong sales growth that we had also in quarter four and quarter three last year.”

Segment EBITDA was reported at €12.25 million, or 4.6 percent  of net sales, while the segment operating profit stood at a loss of €18.5 million — a deterioration from the €15.1 million loss in Q1 2024. “Obviously, we are not fully satisfied actually with the financial performance, and we have accelerated actions to improve our financial performance in the next quarters,” Pompei added.

€800 Million Investment Phase Nears Completion

The Finnish tyre manufacturer is now in the final year of a three-year investment cycle totalling close to €800 million. “Two major investments to build on our new Nokian will be done by the end of this year,” said CFO Niko Haavisto. “We are returning back to the more maintenance type of investments... estimating that to be around €120 million starting next year.”

Key among those investments is the state-of-the-art Romanian factory, which began delivering tyres at the end of March and will ramp up through 2027. “I've been myself 28 years in the business. I can tell you that the investment we've made in Romania is really state-of-the-art... also a factory that is providing us the same flexibility... that we had in Russia,” said Pompei.

Meanwhile, the Dayton, U.S. plant is expected to reach 80 percent  capacity this year. “The land plot and the layout would allow us to triple the capacity there. However, it's not something that we are planning at this moment,” Haavisto said.

Margin Pressures from Raw Material and Tariff Impacts

Margins remain under pressure, largely due to input costs. “The decline was mainly driven by the higher raw materials, and obviously, the necessity as a cost to reinforce our market position in the growing market areas,” said Pompei. Price increases have already been implemented in Q1 and are expected to take effect from Q2 onwards. “We are expecting a positive development or pricing mix already starting from quarter two,” he added.

In North America, tariffs are a growing concern. “The tariffs, of course, are causing some disturbances and some uncertainties,” Pompei noted. “The effect of the tariff will be visible in quarter two. This will require... a lot of discipline from our side.”

Despite this, the CEO sees strategic upside: “The US market is today importing more than 50, actually 60 percent, of the tyres that are sold in the US. Obviously, for us, having a direct presence in Dayton can represent an extremely good element to play in the near future if the tariff remains there.”

Long-Term Outlook: Growth with Leaner Cost Structure

While the company posted a Q1 operating loss, executives remained firm on long-term financial targets: €2 billion in annual sales, a 15 percent  EBIT margin, and 23–25 percent  EBITDA margin. “Those are all intact, and that’s what we believe in,” said Haavisto.

Pompei summarised the strategic vision: “We want to play in the profitable niches of the market, which today are winter tyres... all-season... and heavy tyres as well. Those are extremely profitable niches.” He added, “We are a small player... and of course, we are still a small market player when we look at the global tyre market, which is approximately €250 billion. We have plenty of opportunities to grow.”

On capital structure, the company expects net debt — now around €800 million — to peak in Q3 before tapering off. Liquidity remains “on the safe side,” supported by a commercial paper programme and committed credit lines.

“We are working very hard, really, to deliver growth and at the same time to improve our financial position,” Pompei said. “We can really position Nokian Tyres growing above the market level with our unique value proposition — safe and sustainable, and high-performing products in demanding weather conditions.”

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Apollo Tyres Ltd has introduced its new brand campaign, ‘Har Safar Mein Dum Hai’, with legendary cricketer Sachin Tendulkar as its guiding presence. The initiative, launched in Apollo’s capacity as the Lead Sponsor of the Indian Cricket Team, also features Team India stalwarts Virat Kohli, Rohit Sharma, KL Rahul, Shubman Gill and Arshdeep Singh. Anchored by a poignant brand film, the campaign draws a powerful parallel between the enduring spirit of Indian cricket and the core ethos of Apollo Tyres.

Directed by renowned filmmaker Abhinay Deo and set to the moving strains of A R Rahman’s iconic music, the film traces the arduous childhood journeys of the featured cricketers. It pays tribute to the extraordinary sacrifices made by their families, all fuelled by national pride, to transform youthful dreams into reality. The narrative honours not merely the aspiration to represent India but the exacting standards, discipline and resilience required to earn and uphold that privilege.

It vividly captures their metamorphosis from hopeful children into athletes who now bear the weight of a billion hopes on the world stage – an achievement realised not by talent alone but through a lifelong pledge to be the best. Tendulkar, serving both as brand ambassador and a symbol of enduring legacy, represents the inspirational values and benchmarks that have defined Indian cricket for generations, connecting the past’s glory to the present’s pursuit of excellence.

Neeraj Kanwar, Vice Chairman and Managing Director, Apollo Tyres Ltd, said, “This campaign reflects a core belief at Apollo Tyres that excellence is built through resilience, discipline and consistency. Har Safar Mein Dum Hai is our tribute to the Indian spirit, and to the unyielding commitment it takes to be the best at what you do.”

Simran Kanwar, who wrote the script and screenplay along with conceptualising the Ad film, said, “Har Safar Mein Dum Hai is not just about beginning a journey, it is about the relentless pursuit of excellence. It may be the only ad film to bring together some of the world’s finest sportsmen from a single sport into one film, set to Maa Tujhe Salaam, our cricket anthem. Together, these elements make the film truly iconic, capturing the spirit, pride and standards that define greatness at a global level.”

Devajit Saikia, Secretary, Board of Control for Cricket in India (BCCI), said, “This film authentically captures the spirit of Indian cricket. It reflects the hard work, sacrifice and endurance required to represent the country at the highest level. The BCCI is proud to partner with Apollo Tyres, a brand that understands the importance of nurturing talent and celebrating the journey from grassroots ambition to world class mastery.”

Udyan Ghai, Group Head – Marketing, Apollo Tyres Ltd, said, "The campaign is a strong articulation of Apollo Tyres’ brand philosophy, reinforcing its positioning around performance, endurance and reliability across its product portfolio. Drawing parallels with Indian cricket’s journey from India to the world, the film reflects Apollo Tyres’ own evolution as a global brand while strengthening its emotional connection with consumers.”

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A new joint venture, UniPyrum, has been established by Pyrum Innovations AG and the independent tank farm operator UNITANK Holding GmbH, with the ambition to build a European network for processing end-of-life tyres. Based in Hamburg, the venture will be managed by a dedicated team overseeing the expansion of multiple advanced recycling facilities. The initial blueprint calls for the development of five to 10 such plants across strategic European locations, beginning with several sites in Germany.

Each new facility will feature a modular setup, starting with a minimum of three modern thermolysis reactors. This configuration allows a single site to process at least 22,000 tonnes of scrap tyres annually, with the flexibility for future capacity increases based on local demand. For the launch, three initial target regions have been selected, with comprehensive preliminary work on engineering and business planning already completed. A UNITANK facility in Emleben, Thuringia, is under strong consideration as the first operational location, and the partners are preparing to initiate approval processes imminently.

UNITANK, which holds a 51 percent majority stake in the partnership to Pyrum’s 49 percent, is actively securing the venture’s commercial foundations. This involves concurrent negotiations to establish reliable supply chains for feedstock tyres and to secure offtake agreements for the recycled output. The collaboration combines Pyrum's proprietary technology with UNITANK's industrial logistics expertise to accelerate the rollout of this recycling infrastructure.

Jan Vogel, CEO, UNITANK Group, said, “We are delighted to take a decisive step forward in our longstanding and trusting partnership with Pyrum by establishing this joint venture today. In addition to our core business in the tank storage sector, this creates a new business area with strong growth potential that is independent of the energy transition. The combination of Pyrum’s leading technology and our extensive experience in operating critical infrastructure in the energy sector opens up exciting opportunities for the future. The aim is for the new joint venture to rapidly develop and operate a network of used tyre recycling plants in Germany and neighbouring countries.”

Pascal Klein, CEO, Pyrum Innovations AG, said, “Since our initial memorandum of understanding with UNITANK, we have worked intensively together to further develop our partnership. We are delighted to reach this important milestone today. Following the positive funding approval in Greece and the recently signed shareholder agreement with SUAS, the founding of the joint venture with UNITANK represents the next important step in finally accelerating the construction and operation of new plants. UNITANK’s many years of experience in operating critical infrastructure and its diverse technical and logistical expertise complement our technology perfectly. Together, we are significantly increasing Europe-wide recycling capacity for end-of-life tyres and actively promoting the circular economy.”

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Sri Trang Agro-Industry Public Company Limited (STA), under the leadership of Executive Director Chalermpop Khanjan, has entered a strategic partnership to advance sustainability through innovation. The company participated in a ceremony to sign a Memorandum of Understanding (MOU) with Chiang Mai University and five other leading industrial sectors. This collaboration is dedicated to promoting the development of knowledge, research and innovation, firmly aligning with STA's commitment to sustainability and its core Environmental, Social, and Governance (ESG) values.

The partnership’s specific objectives include advancing joint research, supporting specialised training programmes and strengthening collaborative networks to directly address climate change. A key focus is the transfer of technology and environmental innovations, including climate adaptation solutions, to be applied across business, government and community sectors to drive tangible, shared learning. This initiative reinforces STA’s mission to generate long-term value for all its stakeholders, including farmers, local communities, customers and consumers.

Concurrently, an industrial panel discussion titled ‘Innovations Toward Industrial Sustainability’ was held. Dr Saranthinee Mongkolrat, Sustainability Division Manager at STA, delivered a presentation on ‘Carbon-Smart Natural Rubber: Turning Plantations into Long-Term Carbon Sinks’. Her session underscored the critical role of natural rubber plantations in carbon sequestration and their contribution to a more sustainable industrial future.

Through this integration of expertise, technology and cross-sector collaboration, Sri Trang Group continues to drive its long-term sustainability mission. The Group is committed to consolidating its position as a global leader in the green natural rubber industry, thereby fostering balanced growth and supporting sustainable development on both a national and international scale.

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In a strategic move to deepen its engagement in the Middle East, Hankook Tire, along with Al Dobowi Tyre Company, the official distributors of Hankook in UAE since 1978 under Al Dobowi Group, has entered a three-year official partnership with the celebrated football club Al Ain FC, effective January 2026. The alliance was formally inaugurated at Al Ain’s Hazza Bin Zayed Stadium. This collaboration aims to significantly elevate Hankook’s premium brand stature on a global scale by connecting with the club’s vast regional fanbase and leveraging prominent marketing channels, such as stadium LED advertising.

Al Ain FC, founded in 1968 and currently leading the 2024/2025 season, is the most decorated club in the UAE, boasting numerous domestic and continental titles. Partnering with such an institution provides Hankook a powerful platform to reinforce its market leadership. The sponsorship strategy includes exclusive initiatives like a VIP Hospitality Program and the Ainawi Membership season cards, designed to foster closer sales relationships and deliver distinctive experiences to stakeholders across the region.

This partnership builds upon Hankook's established efforts to cultivate a premium image in the Middle East and Africa, underscored by the introduction of its high-performance Ventus evo tyre series and its role as an original equipment supplier for luxury automotive brands in the local market. Simultaneously, Al Dobowi Group continues to enhance its advanced service infrastructure, aiming to surpass customer expectations at every touchpoint and further strengthen consumer engagement alongside Hankook.

Jong Woo Kim, Vice President – Middle East & Africa Regional HQ, Hankook Tire & Technology, said, “We are delighted to enhance communication with local customers and consumers and expand brand touchpoints through this partnership with Al Ain FC, a representative club of the UAE. Based on our global technical leadership, we will continue to share Hankook Tire’s premium value across the Middle East.”

Surender Singh Kandhari, Chairman, Al Dobowi Group, said, "Al Ain FC is a symbol of success, and we are honoured to join this journey. This partnership brings together three brands standing for performance and long-term commitment."

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