- The North American plant cost as much as $360 million
- Construction of the factory began in 2017
- This will be the company's third global production facility, in addition to the two in Finland and Russia
Nokian Tyres in a statement on Monday, announced that they had begun producing tyres for commercial sale at its North American factory in Dayton, Tennessee. The construction of the factory, announced in 2017, was completed right on time, and the company plans to steadily increase volume throughout the year.
Winter tyres account for around 70% of the Finnish company's sales. In fact, Nokian is the first company in the world to build a winter tyre with retractable studs ( video below). But the company wishes to end this reliance on winter tyres and is now trying to step up its all-season and all-weather tyre production.
The new factory thus will be primarily used to increase production of all season/ all weather tyres for the company, crafting safe and sustainable products that will be tailored to the needs of North American drivers.
The new factory by Nokian Tyres is the company's third global production facility, joining factories in Nokia, Finland and Vsevolozhsk, Russia. The world-class facility itself was recently inaugurated at a ceremony in October, 2019.
The factory will also help steer the company towards its goal to double sales in the region between 2018 and 2023. Nokian Tyres made the first test tyre at the facility on July 1, 2019 and continues to certify a growing number of tyre models and sizes.
"The start of commercial production at the Dayton Factory is a significant milestone for our customers and employees," said Nokian Tyres President and CEO Hille Korhonen. "We are eager to provide North American drivers with a larger volume of high-quality tyres as we grow our relationships with our partners."
The tyre maker added that the 830,000-square foot complex is one of the most advanced tyre production facilities in the industry housing highly automated and sustainable processes. Solar panels are being installed in the parking lot, and the company will recycle excess materials that result from production. The solar array in the parking lot will generate 3 megawatts of electricity to be utilized at the facility.
Last September, the company was selected to the Dow Jones Sustainability Index for the third consecutive year. Only the top 10 percent of the most sustainable listed companies in the world are included in the index.
With state of the art choice ingredients and a vibrant employee culture, the facility promises to be one of the best in the world, the company said in a statement.
Nokian also said that they plan to ultimately employ as many as 400 workers at the facility which is 40 miles north of Chattanooga. Currently, just over 100 team members work at the factory.
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"The Dayton factory is a vital growth driver for us in North America, and we're glad it remains on track to deliver premium value to our customers and drivers," said Senior Vice President, Americas Mark Earl. "It will enable us to shorten delivery lead times, satisfy the rising demand for our products and help the Southeast Tennessee community grow in the process."
