Nokian, Finland – Nokian Tyres’ outgoing CEO Ari Lehtoranta will present his proposal for a third production plant to the company’s board before the end of the year, he said in a conference call on 1 Nov.
“As for the third factory, we are progressing and we are putting forward a proposal to the board in this quarter,” said Lehtoranata who is stepping down from his position at the end of the year.
“Whether the board will be able to make an immediate decision or leave the final decision to be reviewed by my successor, I cannot guarantee,” he added.
The proposal will be presented to the next board meeting which will be in December.
On the point of his successor, Lehtoranta said Nokian’s board was working on the issue but that there was “nothing to report”.
Earlier this year, Lehtoranta confirmed that two locations, east Europe or North America, were being studied for the plant.
“We are now also considering the option of maybe getting into a partnership,” he told ERJ on the sidelines of the Reifen tire show on 24 May.
According to the CEO, the new plant will have a capacity of 5 million passenger car tires a year, and its location will be announced by the fourth quarter of this financial year.