Wed May 3 07:55 am 2017 in category Stock exchange releases
Nokian Tyres’ Board of Directors has made a principal decision to invest in a greenfield factory in the USA
Nokian Tyres plc Stock Exchange Release May 3, 2017 7.55 a.m.
Nokian Tyres’ Board of Directors has made a principal decision to invest in a greenfield factory in the USA
Nokian Tyres’ Board of Directors has made a principal decision on the investment in the third factory and authorized the management of the Company to sign a Letter of Intent with the respective authorities in the USA. The new greenfield factory will be located in Dayton (Rhea County), Tennessee, USA. The annual capacity of the factory will be 4 million tyres with an expansion potential in the future. 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 USD 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.
The planned headcount of the factory is about 400 employees. The Dayton factory will concentrate on the production of passenger, SUV and light truck tyres that are sold exclusively or primarily in the North American market.
“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.
More information and illustrations can be found at www.nokiantyres.com/daytonfactory
A Q&A conference call regarding Q1 result and the factory decision will be held on May 3, 2017 at 6.00 p.m. Finnish time. Please dial in 5-10 minutes before the beginning of the event:
FI: +358 9 81710495
UK: +44 20 31940552
SE: +46 8 56642702
US: +1 855 7161597
Nokian Tyres plc
Antti-Jussi Tähtinen
Vice President, Marketing and Communications
Further information:
Mr. Petteri Walldén, Chairman of the Board of Directors, tel. +358 10 401 7476
Mr. Andrei Pantioukhov, Interim President and CEO, tel: +358 10 401 7733
Distribution: Nasdaq Helsinki, the media and www.nokiantyres.com