The building work of Nokian Tyres’ third factory starts in North America
Nokian Tyres broke ground on its $360 million manufacturing facility in Dayton, Tennessee marking the start of the building work of their third factory. The new plant will service customers across the United States and Canada, concentrating on the production of North American-specific car and light truck all-season tyres. The Tennessee location will increase production and warehouse capacity, allowing Nokian Tyres to meet the increasing demand throughout North America. The new plant will be capable of producing four million tyres annually with the room for expansion to meet future demand. The site will also house a distribution facility with a storage capacity of 600,000 tyres.
"Nokian Tyres’ investment in Tennessee is supporting our growth ambition and commitment to serve our customers in North American market,” says Hille Korhonen, President and CEO, Nokian Tyres. “With increased plant capacity we will be able to add new North American specific products, reduce delivery times and strengthen our overall ability to serve our customers throughout the US and Canada.”
"With increased plant capacity we will be able to add new North American specific products, reduce delivery times and strengthen our overall ability to serve our customers throughout the US and Canada."
First tyres will be produced in the new plant in 2020. The annual capacity of the factory will be 4 million tires in 2023.
While the Dayton factory will serve North American customers more efficiently, it will also release capacity from other factories to serve other growth markets. “We are investing in the future growth. Total sales are estimated to increase and additional production capacity will be needed. All three factories will have important roles in Nokian Tyres’ growth plan, serving different market areas,” says Pontus Stenberg, Vice President of Sales.
"We are investing in the future growth. Total sales are estimated to increase and additional production capacity will be needed."
“We will be able to strengthen our global competitive position by installing leading edge technology. Also having increased production capacity enables us to reduce delivery times, grow our product portfolio and strengthen our overall ability to serve our customers globally.” Stenberg summarizes.
State of the art production
Nokian Tyres’ production plants are located in Finland and Russia. At the headquarters in Nokia, Finland, centralized product development is carried out and prototypes and test runs are completed. The Nokia factory manufactures car tyres, heavy-duty tyres, and retreading materials for truck tyres. The combined production capacity in Nokia and in Russia Vsevolozhsk is more than 20 mill. tyres. Read more about production
Nokian Tyres held a groundbreaking ceremony today to celebrate the beginning of the building work of the Company’s third factory. The new factory will be the Company’s first manufacturing facility in North America.
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.