Nokian sold out and planning new tyre factory

ERJ staff report (DS)

Nokia, Finland -- Nokian Tyres is planning a third tyre factory in Europe, according to Bloomberg. Bloomberg quoted Chief Executive Officer Kim Gran saying, “We have presently only one problem and that is lack of capacity. We have to start building a factory by the end of 2011 or start of 2012.”

Bloomberg quoted Gran as saying the new plant would have capacity for at least 6 million car tyres per year and would be located, "near its existing plant in St. Petersburg, Russia, or somewhere in eastern Europe"

Bloomberg also said Nokian would in 2011 expand its existing Russian factory to 11 million units/year from the current 8 million.

A spokeswoman for Nokian said, "Nokian Tyres has actually been looking for a place for a third factory for quite a long time now. Due to an increase in demand and global shortage of tyres, the plans are becoming more mature and therefore decisions have to be made during first half of 2011. Note, however, that so far no decisions have been made on the actual investment itself and/or the possible location. Further, based on our experience, a green field factory capable of 6 million tyres annual output would require an estimated 200 million euros investment." She continued, "We are expanding and modernizing both existing factories so that at the end of 2011 their combined annual capacity could from there on be on the level Mr. Gran stated."

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