NOKIA, Finland (Dec. 13, 2010)—Nokian Tyres P.L.C. is evaluating plans for a third tire factory—capable of 6 million tires annually—to meet increased demand for its products, company officials confirmed recently.
The company anticipates reaching a decision during the first half of next year on where such a plant would be located and when it would be built, a company spokesperson said. A recent Bloomberg news report quoted Nokian CEO Kim Gran as saying a third plant likely would be built near the firm's existing plant near St. Petersburg, Russia, or somewhere in eastern Europe.
Building a plant capable of 6 million units annually would require an investment of about $265 million, the spokesman said.
Nokian already is in the midst of a $20 million expansion at the Vzevolozhsk, Russia, plant that will expand the five-year-old plant 38 percent to 11 million units annually. Nokian's other plant is at its headquarters in Nokia.
Nokian's sales through three quarters of fiscal 2010 were up 25.2 percent over 2009 to $909.5 million.