ERJ staff report (DS)
Helsinki, Finland -- Nokian Tyres is to add significant tyre-making capacity in Russia, adding a new plant adjacent to its existing facility in Vsevolozhsk where it is also adding two more lines during 2011. The project was announced at the Annual General Meeting of shareholders in Helsinki today (7 April)
In a hugely upbeat presentation, Nokian's CEO, Kim Gran said the company will build a new factory with capcity for 5 - 6 million tyres annually, adjacent to its existing facility in Vsevolozhsk, Russia. The plant is expected to come on stream in the 2012-2014 period. At present the company is finalising details of tax incentives and infrastructure requirements.
In addition, Nokian will bring on stream two additional tyre-building lines at the existing plant in June and August this year, bringing the number of lines to 10 and adding a further 200 workers, taking total employment to around 1050.
Nokian will also upgrade the automation at its plant in Nokia, Finland, and take on an additional 150 workers there during 2011.
Gran said Nokian expects to spend euro 26 million on moulds during 2011. Total investments in 2012 and 2013 will be around euro 120 million in each year.
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Gran's presentation to shareholders (Investments detailed on slide 12)