News from Notch Consulting, Inc.

December 13, 2010

Nokian expanding, considering location of new plant

Filed under: General, Tires — Notch @ 12:45 pm

According to Reuters, Nokian will decide by the spring where to site a new Euro 200 million tire plant — either in Russia or another location in eastern Europe.

“We either build a new plant next to our factory in St. Petersburg, which is a pretty strong alternative at this point, or we build a new site somewhere in eastern Europe,” Chief Executive Kim Gran told Reuters in an interview on Monday.

“It would be an easy decision for us to build even more in Russia, but then again it’s quite a risk centre for the company, since we already have 70 percent of our production there,” he added.

Nokian plans to invest Euro 350-400 million over the next three years to boost its capacity. The company is also looking at expanding in China.

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