Nokian Tyres puts $360M into US greenfield factory project

The Finland-based global tyre manufacturer has announced, in May 3, its decision to invest in the Dayton factory which is to be built in Tennessee.

The greenfield factory is planned to produce around four million tyres annually with possibility of an expansion in the future. It also includes a house distribution facility which will enable to store 600,000 tyres.

Nokian Tyres’ Chairman of the Board of Directors, Petteri Walldén explained: “The factory is above all a strategic decision to continue and enable Nokian Tyres’ growth path. 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.”

The factory will be located in Tennessee, more precisely in Dayton (Rhea County). The construction phase is to start in 2018 with the objective to produce the first tyres in 2020.

Nokian Tyres’ Interim President and CEO, Andrei Pantioukhov commented: “The Dayton, Rhea County site was selected based on several factors, including skilled workforce availability, logistical advantages and business friendly administration.”

Bill Haslam, Governor of Tennessee added: “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.”

The greenfield factory project is worth $360M.