VSEVOLOZHSK, Russia (April 9, 2008) —Nokian Tyres P.L.C. is going ahead with an expansion of mixing capacity at its Vsevolozshk plant to support an expansion of tire manufacturing capacity already under way.
Work on the project, which also includes new administrative offices, will start immediately and be completed by March 2009, Nokian said. Fellow Finnish construction company Lemcon Oy will oversee the work, Nokian said.
The project will encompass 312,400 square feet, with the mixing area taking nearly 85 percent of the space, Nokian said.
Nokian is completing work now on a 355,800-sq.-ft. expansion of the tire factory itself, which is expected to boost annual capacity to 10 million passenger and light truck tires by 2011.
Nokian didn't disclose the investment for the mixing plant project, but earlier said it had budgeted more than $250 million for the capacity expansion overall. Production at the Vsevolozhsk factory began in September 2005.