VSEVOLOZHSK, Russia (May 22, 2012)—Nokian Tyres P.L.C. expects its newest factory, built adjacent to its seven-year-old plant in Vsevolozhsk, to start production in June with additional capacity available in 2013-14.
The plant will be capable of producing about 6 million tires at full capacity, which will expand Nokian's capacity in Russia to 17 million tires annually.
Nokian did not specify its investment in the facility, but the firm said last summer it was budgeting about $170 million overall in capital expenditures for each of the next three years.
At the same time, Nokian announced it is switching the car tire manufacturing schedule at its headquarters factory in Nokia, Finland, to five days a week starting in July, a change that will result in the reduction of about 120 jobs. Nokian is in the midst of a $40 million modernization of the factory.