Nokian Tyres manufactures passenger car tires in its factories in Nokia, Finland and in Dayton, US. All heavy tires are manufactured at the Nokia factory except for tires for trucks and buses, which are designed in Finland and produced by off-take contract manufacturers in the EU.
The Nokia factory plays an important role not only in the manufacturing of tires, but also in product development. It is a key location for our centralized product development, prototyping and test runs. In 2022, we bought three hectares of land in Nokia to secure future development opportunities at the Nokia factory.
Our Dayton factory in the US started commercial tire production in 2020, after which we have gradually increased production capacity. The Dayton factory is where we manufacture North American-specific car and light truck all-season and all-weather tires. The Dayton factory has a significant role in our North American growth plan.
Since 2005, we have also operated a passenger car tire factory in Russia. In June 2022, we announced that Nokian Tyres will initiate a controlled exit from Russia and focus on other core markets.
To secure supply of our products, we aim to further increase production capacity at both our factories in Finland and in the US. We have also decided to invest in completely new capacity in Europe to support future growth. In addition, we aim to increase the share of outsourced production.