Nokian increases production, work force at U.S. plant

DAYTON, Tenn.—Nokian Tyres P.L.C. is increasing its work force and production at its North American plant in Dayton, in response to rising tire demand in North America.

The Finnish-based tire maker said it will be adding third and fourth production shifts at its U.S. factory as it moves to 24/7 production.

The moves are another step toward the tire maker reaching its goal of producing one million tires at its Dayton facility. Nokian makes all-season and all-weather tires at the facility, which started production in January, 2020.

Jukka Moisio, Nokian's president and CEO, said in a statement that the tire maker is "proud to offer products that are tailored to fit the needs of drivers in (North America).

"We are advancing with our growth plans and offer a versatile range of tires for demanding conditions. Last year, we launched a record number of new products globally, and we will reach a new record in 2021."

Nokian recently doubled the work force at the facility to approximately 300. Once the Dayton factory achieves full capacity, it is expected to produce up to four million tires annually and have a work force of 400.

"We're focused on serving our customers by increasing our volume while maintaining the premium quality of the tires we're making here," Dayton Factory Operations Director David Korda said.

Production began at the factory in January 2020 to serve its customers in the North American market. It was the first in the tire industry to earn LEED v4 Silver certification earlier this year.

Nokian said the factory helps to reduce delivery lead times to North American customers and build tires designed specifically for the region, such as the Nokian Tyres One, an all-season passenger tire it launched in North America in January.

"The expansion to third and fourth shifts will allow us to greatly increase our production capacity while gaining efficiencies from continuous operation," sadi Adrian Kaczmarczyk, Nokian senior vice president of supply operations.

In the first quarter, Nokian set a record for sales volume, increasing year-over-year net sales by 28.5 percent globally compared to 2020 and 27.5 percent in North America.

Nokian Tyres also said it is operating its Russia factory at full capacity and earlier this year said it will increase production capacity by 30 percent at its Finland facility.

The company said it has begun testing tires at its new test center in Spain in May 2021.

Nokian also opened a 507,000-sq.-ft. storage facility in mid-May in Shorewood, in suburban Chicago, that replaces a smaller warehouse nearby that the firm had operated since 2013.