Nokian Tyres is restructuring its European operations following its withdrawal from Russia. The company is replacing lost capacity with a new manufacturing plant in Romania and focusing product development on winter and all-season tyres. The strategy aims to stabilise supply for European distributors and fleets while maintaining Nokian’s position in premium winter segments.
Nokian Tyres began a controlled exit from Russia in June 2022 after sanctions linked to the war in Ukraine made continued operations unviable. The decision created a major operational gap. Before the exit, around 80 per cent of the company’s passenger car tyres were produced in Russia.
The Russia and Asia business area also accounted for roughly one fifth of Nokian Tyres’ net sales. Replacing that production capacity became a central priority.
Former chief executive Jukka Moisio described the shift as a structural reset for the business. He said the company would now focus on “building the new Nokian Tyres” with investment directed towards Europe and North America.
In practice, this means rebuilding manufacturing capacity closer to core markets and strengthening the company’s winter product pipeline.
A central element of the strategy is Nokian Tyres’ new factory in Oradea, Romania. The greenfield project represents an investment of about €650 million.
The plant is Nokian’s third tyre production facility alongside its long-established site in Nokia, Finland, and its factory in Dayton, United States.
Planned annual capacity is about 6 million tyres, with room for expansion if demand increases. Production is expected to focus on passenger car tyres for the European replacement market.
Tyres produced in Romania will primarily supply Central Europe. The location places the factory close to key distribution networks and automotive customers.
This distributed manufacturing approach reduces geopolitical exposure and keeps production closer to regional demand. It also replaces part of the capacity previously supplied by Nokian’s Russian facility, which had produced up to 17 million passenger car tyres annually.
Alongside manufacturing changes, Nokian Tyres is emphasising technology leadership in winter tyres.
The company recently introduced the Hakkapeliitta 01, a studded winter tyre designed to adapt to temperature changes. The tyre uses what Nokian calls Double Action Stud Technology, allowing studs to switch between active and inactive modes depending on conditions.
According to the company, the system enables improved grip in icy conditions while reducing road wear and noise in milder temperatures.
Paolo Pompei, President and Chief Executive Officer of Nokian Tyres, said the development marks a significant step for the brand’s winter technology.
“The new Nokian Tyres Hakkapeliitta 01 represents one of our company’s biggest innovations since we introduced the first winter tyre more than 90 years ago,” Pompei said. “This new winter tyre achieves what was previously thought impossible: a studded tyre that responds to temperature changes to deliver safety while protecting the road.”
The company says the technology has been tested across Arctic proving grounds and milder European test locations.
For tyre distributors and retailers, Nokian Tyres’ restructuring changes how the brand supplies the European market.
The Romanian plant provides an EU-based production hub closer to major Central European distribution routes. This should improve delivery stability and reduce the geopolitical risks associated with long-distance supply.
In practice, the strategy reinforces Nokian Tyres’ traditional focus areas:
The company’s Finnish factory will remain the centre for its most advanced winter products and studded tyre technologies.
As European regulation and environmental expectations tighten around studded tyres and road wear, adaptive technologies such as the Hakkapeliitta 01 could become an important differentiator.
For fleets and tyre retailers operating in winter-affected markets, Nokian’s combination of regional production and specialised winter innovation may shape product availability and purchasing decisions in the coming years.
Tagged with: Nokian Tyres, winter tyres, studded tyres, tyre manufacturing Europe, tyre supply chain, Romania tyre factory, adaptive stud technology, tyre production strategy, European tyre market, tyre innovation
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