DAYTON, Tenn.—Nokian Tyres Inc. has begun construction of a warehouse distribution center on the grounds of its Dayton factory campus that's designed to hold up to 600,000 tires.
The 350,000-sq.-ft. facility will be ready for use by mid-2024, Nokian said, and will help the company handle distribution of tires from the Dayton plant, where capacity is being doubled to 4 million tires a year by next year.
The new distribution center will serve a growing volume of customers in the Sun Belt, Nokian said, and will complement nine other warehouses Nokian operates throughout the U.S. and Canada. It's part of a $174 million investment parent Nokian Tyres P.L.C. announced in January covering the capacity expansion and improvements at the four-year-old Dayton factory.
Tommi Heinon, Nokian Tyres' vice president of passenger car and light truck tires, said this project is "another step forward in our quest to deliver safe, sustainable tires for North American drivers."
Brighton, Mich.-based BC Construction Group broke ground in early March on the project.
The warehouse will be linked to the tire plant by conveyors will deliver tires from the factory via an overhead bridge that connects the buildings. At the warehouse, they will be stacked automatically into steel storage racks.
Commercial production of tires at Dayton plant began in early 2020. The current expansion project will enable Nokian to double production of all-season and all-weather tires and add capacity for light truck tires.