Nokian Tyres Plans Factory in Tennessee

Finish tiremaker Nokian Tyres plc plans to open a $360 million tiremaking plant in Dayton, Tenn., in 2020.

Construction of the 830,000-sq-ft factory will begin early next year. The facility will employ about 400 people and have initial capacity to make 4 million tires per year for cars, light trucks and SUVs. The complex also will house a distribution facility with storage capacity for 600,000 tires.

Nokian, best-known for its high-end aftermarket winter tires, also operates plants in Finland and Russia and says it plans to eventually add a fourth in central Europe. The company describes North America as one of its most important growth areas.

North America currently accounts for 13% of Nokian’s annual revenue, compared with 36% for the Nordic region, 26% in Russia and 25% elsewhere in Europe.

Nokian expects at least 10% sales growth this year. The company’s net sales in the first quarter of 2017 jumped 18% to €326 million ($356 million), and operating profit climbed 17% to €59 million ($64 million).