NOKIA, Finland (June 28) — Nokian Tyres P.L.C. has contracted a Finnish construction company to complete work on an expansion of its tire plant in Vsevolozhsk, Russia.
The contract, signed June 21 with Lemcon Oy, calls for work on the factory´s outer structure to be completed by March, Nokian said. The project will encompass 355,080 square feet and provide space for two production cells that will facilitate a 50-percent capacity expansion to 6 million tires, the firm said.
Ground preparation already has been completed, Nokian said, and heating, plumbing, electricity, air conditioning and automation tasks will be carried out as a separate contract to be agreed on later.
Lemcon was the general contractor for the plant´s first phase, from June 2004 to September 2005.
Earlier, Nokian said it budgeted $253 million for the expansion, which will boost capacity to 10 million units by 2011. The increased capacity will necessitate further investments in an expansion of the mixing plant and machine lines, Nokian said.