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May 11, 2004 12:00 AM

Nokian to hike winter tyre production in Finland

ERJ Staff
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    From Rubber & Plastics News

    Nokia, Finland-Nokian Tyres PLC, pursuing a strategy of focusing on expanding and profitable markets, will expand capacity this summer for winter passenger tyres at its Nokia plant, investing an undisclosed sum in eliminating production bottlenecks.

    At the same time, Nokian said it will break ground this spring on a tyre factory in the St. Petersburg, Russia, area, which will make Nokian-brand passenger tyres for Russia and other eastern European countries. Nokian has budgeted $65 million this year and next for the facility's construction.

    The plan to expand winter tyre production, to 6 million units a year, coincides with increased contract manufacturing of lower-value-added products, which frees up space at the Nokia plant for more profitable products, the company said.

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