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January 01, 2018 12:00 AM

Nokian to raise heavy-tire production capacity

Patrick Raleigh
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    Nokia, Finland — Nokian Tyres PLC is planning to increase capacity for heavy commercial tires at its headquarters plant in Nokia by 50% with an $82 million investment over the coming three years.

    The project will increase the plant's rated capacity for heavy tires to about 32,000 metric tons per year from 20,000, and will create up to 50 new jobs, Nokian said.

    Manu Salmi, vice president of Nokian Heavy Tyres Ltd, said the investment reflects rising demand for the unit's products and said the Nokia plant is the "natural choice" for continuing to make such products due to the skilled personnel and capabilities at the 113-year-old factory.

    Nokian Heavy Tyres also signed an agreement with the labour union at the plant through 2020 on increasing competitiveness through flexibility.

    Nokian Heavy Tyres produces a range of commercial tires, including truck/bus, agricultural/forestry, earthmover/mining, industrial and material along with "Noktop" retreading materials.

    The unit represents 10% of Nokian's annual sales.

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