Nokian to invest $360 million in new US tyre factory

Wednesday 3rd May 2017 | 0 Comments

 

Nokian Tyres’ board of directors has authorized its management to sign a letter of intent with the respective authorities to build a new tyre manufacturing facility in America. The new greenfield factory will be located in Dayton (Rhea County), Tennessee, USA. It will concentrate on the production of passenger, SUV and light truck tyres that are sold exclusively or primarily in the North American market. The annual capacity of the factory will be 4 million tyres with an expansion potential in the future. About 400 people are expected to be employed.

The site will also house a distribution facility with a storage capacity of 600,000 tyres. The total investment amount at this phase is approximately US$360 million. Construction is scheduled to begin in early 2018 and the first tyres are to be produced in 2020.

“The factory is above all a strategic decision to continue and enable Nokian Tyres’ growth path. The total sales of tyres is estimated to grow in coming years. With this investment, we will get the needed capacity for growth. And while the Dayton factory clearly enables us to serve our North American customers better and more efficiently, it also improves our production capabilities and customer service throughout our global operations,” says Petteri Walldén, Nokian Tyres’ chairman of the Board of Directors.

“Selecting a North American site shows our commitment to our customers in one of our most important growth areas. The Dayton, Rhea County site was selected based on several factors, including skilled workforce availability, logistical advantages and business friendly administration. After thorough investigation, it was clear that Tennessee was the best choice for the factory, and we are proud to become part of the community,” says Andrei Pantioukhov, Nokian Tyres’ interim president and CEO.

“This is a significant announcement for both the state of Tennessee as well as the city of Dayton. It showcases how our state’s ideal location and strong workforce creates an environment where companies like Nokian Tyres will thrive and succeed,” says Bill Haslam, Governor of Tennessee.

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Category: Company News, International News