NOKIA, Finland—Nokian Tyres P.L.C. plans to add a third factory in Europe, probably in eastern Europe, to meet the expected rising demand for its products, according to a top executive.
Hannu Teininen, Nokian vice president of sales and logistics, said company management has approved funding for a third plant, which will be built "whenever it is needed." It would take about two years from committing to the project to initial production at the site, he told U.S. and Canadian tire dealers recently.
For now, Nokian continues to invest heavily in its eight-year-old factory complex in Vsevolozhsk, Russia, where annual manufacturing capacity is expected to reach 15.5 million units this year with the installation of a 13th manufacturing line. Nokian has invested $915 million in the factory and plans to spend more than $100 million on the facility this year.