Nokian’s Leningrad Factory Due to Open in July/August

Nokian Tyres is to launch its Vsevolozhsk, Leningrad, tyre plant in July or August 2005. Speaking at a Leningrad an Interfax press conference, regional governor Valery Serdyukov confirmed the company would begin production this summer.

The company has already begun installing technical equipment and launched one part of the plant, Andrei Pantyukhov, general director of Nokian Tyres in Russia, explained. The plant is expected to produce 1.5 million tyres a year by the end of 2006, Mr Pantyukhov added.

Another four lines are planned for installation by 2008 and capacity will increase to 4 million tyres a year. In total the number of production lines is expected to rise to nine by 2014, with capacity reaching 8 million tyres per year.

Mr Pantyukhov also described how the plant’s products will be sold in Russia through 20 official distributors (these distributors sold 1 million tyres in 2004).

Construction on the 52 million euro plant began in June 2004. Total investments in the construction and development of the facility is believed to amount to around 300 million euros.