Nokian wants to build a factory in Russia

The new plant will be built adjacent to existing enterprises of the Finnish company in Vsevolozhsk. Since its launch volume production of the company to grow by 5-6 million tires per year and will be around 20-21 million tires for 2012-2014. CEO Kim Gran said that market growth is quite evident, therefore, Nokian needed new capacity.

Investments in construction of the new enterprise will be about 240 million euros. The Company is projecting sales of Nokian tires in Russia in 2012 should grow by 25-35%. And in order to meet rapidly growing demand, the company plans to not only run the new plant, but also add additional lines to the existing facility.

According to the company, 80% of the profits made on winter tires, which are particularly relevant for Russia, as the company focuses on fast growing markets of the former Soviet republics and Eastern European countries. Nokian Renkaat also plans to expand its production due to the Chinese market.