Nokian to build second plant in Russia
At the company’s Annual General Meeting on April 7, Nokian Tyres president and CEO will share plans about the construction of a second factory in Russia. This new plant will be erected alongside Nokian’s existing plant in Vsevolozhsk. “Market outlook has strengthened clearly and we need more production capacity,” reported Gran in a statement prior to the AGM. “We, together with the local authorities, are preparing a new plant next to the current one, which will increase our annual car tyre capacity by five to six million tyres. Negotiations about tax relieves and infrastructure investments are in their final stage.” Gran added that the factory will enter production in 2012 and capacity increases will be made in the two years to 2014.
In total, Nokian intends to invest around 240 million euros increasing capacity in between 2012 and 2013. “We are also considering adding production capacity for heavy tyres in order to serve the growing demand. We will make a decision on this matter during this year,” Gran added. These planned investments will be made on top of Nokian’s plans for this year, which include the entry of the ninth and tenth production lines at the Vsevolozhsk plant into service in July/August and the addition of some 200 new employees to the plant’s workforce.
Nokian’s sales in Russia shot up 78 per cent in 2010, clearly outstripping the Finnish firms overall 32 per cent sales growth during the year. During the year Nokian also made notable market share gains in the premium and medium winter tyre segments there. Nokian’s Russian market growth for 2011 is forecast at more than 30 per cent, and a growth in tyre demand is expected there for the next five to seven years.
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