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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 The U.S. Tire Manufacturers Association (USTMA) is convening its annual Tire Manufacturing Ambassadors programme this week, sending industry professionals to Capitol Hill to press lawmakers on policies supporting domestic manufacturing, road safety and sector innovation.

The two-day event, running from 24–25 June, brings together representatives from USTMA’s 11 member companies — including engineers, business managers and marketers — to meet with members of Congress and their staff. The discussions are expected to focus on key legislative priorities such as expanding tyre retreading in the U.S., advancing consumer safety initiatives, and passing a congressional resolution in support of National Tire Safety Week.

“The U.S. tyre manufacturing industry is a vibrant engine of innovation, enabling safe and sustainable mobility for consumers and businesses. Our industry is a cornerstone of the nation’s economy, supporting more than 800,000 jobs and keeping up with evolving consumer expectations on reliability, safety and environmental impact,” said Anne Forristall Luke, USTMA president and CEO.

The ambassadors, who live in the same communities where the industry operates, are set to highlight how national legislation impacts local jobs and infrastructure. USTMA members operate 55 manufacturing facilities across 16 states and contribute to a $170.6 billion annual economic footprint, the association said.

The event follows a letter sent by USTMA to Congressional leaders in February outlining the sector’s legislative agenda. The group is advocating for increased investment in tyre innovation, transparency measures for consumers, and job creation through infrastructure and sustainability-focused policies.

“Our Ambassadors represent the manufacturing workers who power the industry every day, and we are honoured by their advocacy for the tyre manufacturing industry and the communities it supports,” Luke added.

The initiative reflects USTMA’s broader push to align policymakers with the industry’s goals of maintaining global competitiveness while securing long-term growth for U.S. manufacturing.

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Finnish tyre manufacturer Nokian Tyres has been recognised by TIME Magazine as one of the World’s Most Sustainable Companies 2025, ranking 98th on the prestigious global list of 500 companies demonstrating outstanding environmental and social responsibility.

The second edition of the rankings, compiled by TIME Magazine in collaboration with data firm Statista, evaluated companies based on verified sustainability commitments, including UN Global Compact membership and greenhouse gas emission reduction targets validated by the Science-Based Targets initiative.

Assessment criteria also included performance ratings from respected organisations such as CDP and MSCI, alongside evaluations of sustainable business practices, transparency, and environmental and social stewardship.

Nokian Tyres has positioned itself as a sustainability pioneer within the tyre industry, driving sustainable development both within its operations and throughout its value chain. The company’s environmental leadership dates back three decades, with its Finnish factory becoming the world’s first tyre manufacturing facility to achieve environmental certification in 1995.

“We create tyres that are safe, innovative and sustainable. Nokian Tyres has been a pioneer in sustainability in the tyre industry for over three decades. As early as 1995, our factory in Finland was the first tyre factory in the world to gain an environmental certification. We are proud of our track record and want our sustainability actions to have a meaningful impact. The most recent example of this is our new factory in Romania, the first full-scale zero CO2 emission tyre factory in the world,” said Paolo Pompei, president and chief executive of Nokian Tyres.

The company’s latest sustainability milestone is its new Romanian manufacturing facility, which represents the world’s first full-scale zero CO2 emission tyre factory, demonstrating Nokian Tyres’ continued commitment to environmental innovation in industrial manufacturing.

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Chinese state-owned enterprise Sinochem has achieved a significant milestone, with its brand value surpassing 500 billion yuan for the first time, according to rankings released at the 22nd World Brand Conference in Beijing.

The World Brand Lab announced that Sinochem ranked seventh on its annual “China’s 500 Most Valuable Brands” list for 2025, with the company’s brand value climbing from 475.906 billion yuan in 2024 to over 500 billion yuan this year.

This marks the 22nd consecutive year that the Sinochem brand has secured a position on the prestigious ranking. The company’s property development arm, Jinmao, also featured prominently, placing 170th with a brand value of 74.186 billion yuan.

The World Brand Lab’s methodology evaluates brand worth through three key metrics: financial performance, brand strength, and consumer behaviour analysis, employing a “present value of earnings method” for valuation. The ranking is widely regarded as one of the most authoritative assessments in Chinese brand research.

Sinochem’s consistent performance has been particularly notable since 2004 when it first entered the top ten of the annual list. Following the establishment of China National Chemical Corporation on 8 May 2021, the enhanced Sinochem brand has maintained its seventh position for four consecutive years, demonstrating sustained growth in brand value and international market recognition.

The company attributed its success to implementing comprehensive brand management strategies aligned with government directives on brand development. Sinochem stated that it will continue to leverage high-quality brand building and valuable brand assets to strengthen its core functions and competitiveness, supporting the company’s long-term development objectives.

The World Brand Conference, now in its 22nd year, serves as a key platform for evaluating China’s corporate brand landscape and tracking the evolution of the country’s most significant commercial entities.

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German tyre major Continental is significantly expanding its presence in the global market for ultra-high-performance (UHP) tyres. The company states that the UHP tyres are designed for safe and dynamic driving at high speeds and are available in sizes from 18 inches.

Between 2019 and 2024, the premium tyre manufacturer increased its worldwide sales of UHP tyres in the passenger car and light truck segment by approximately 15 percent. Over the same period, the share of UHP tyre sales across all Continental brands rose from 38 to 52 percent, and to 60 percent for the core Continental brand, up from 46 percent five years ago.

Edwin Goudswaard, Head of R&D, Continental Tires, said, “For us, ultra-high-performance tyres are much more than a technological flagship product – they are a strategic driver of innovation. Their development requires engineering of the highest standard, high-tech materials and precise testing and production processes. At the same time, they demonstrate our solid position in the premium segment and significantly contribute to Continental’s economic strength.”

UHP tyres are claimed to provide excellent grip, precise steering, strong brake performance and high driving stability, primarily used on powerful vehicles such as sports cars, SUVs and luxury saloons. The global demand for UHP tyres is projected to grow by around 9 percent annually until 2029, driven by the increasing popularity of SUVs and the electrification of powertrains. Continental is experiencing particularly high demand for UHP tyres in the Asia-Pacific region, especially in China.

The German brand currently offers UHP tyres across all product segments, including summer, winter and all-season tyres. The flagship product in its UHP portfolio is the SportContact 7. Since its global launch in 2022, the SportContact 7 has won 21 out of 24 independent tyre tests, boasting a success rate of over 87 percent.

The company stated that tyre testers have praised its ‘shortest braking distances under all test conditions’ and ‘very balanced and safe vehicle handling on dry roads and even better performance on wet roads compared with the competition.’ Its precise steering characteristics, reproducible driving responses and excellent grip during sporty driving have also received acclaim.

Continental continues to invest in the development of its UHP products, fostering close collaborations with vehicle manufacturers and tuning specialists like AC Schnitzer and Brabus.

"These partnerships enable us to transfer ideas from the high-performance segment to the mass market,” explained Goudswaard. The High-Performance Technology Centre (HPTC) in Korbach produces high-performance tyres for powerful and technologically sophisticated passenger cars and conducts rigorous testing under realistic extreme conditions.

The SportContact 7 has received original equipment approvals for various models, including the Porsche Panamera, Maserati Levante, Audi RS6 Avant, Polestar 3, BMW 5 Series and BYD Seal. The tyre is available in 120 sizes from 18 to 24 inches and has been developed for both electric and conventional vehicles.

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