Finnish tyre manufacturer Nokian Tyres has announced plans to invest nearly $360M in a greenfield factory in Dayton (Rhea County), Tennessee.
The new factory will have an annual capacity of nearly 4M tyres, with scope for future expansion. It will employ 400 staff and will focus on the production of passenger, SUV and light truck tyres that are sold exclusively or primarily in the North American market. The site will also feature a distribution facility with a storage capacity of 600,000 tyres.
Petteri Walldén, Nokian Tyres’ chairman of the board of directors, said: “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.
Nokian Tyres’ interim president and CEO, Andrei Pantioukhov, added: “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.”
Construction work on the project is expected to start in early 2018, with the first tyres expected to be produced in 2020.