NOKIA, Finland (Feb. 15, 2005) — Nokian Tyres P.L.C. is accelerating the pace of the second phase expansion of its tire plant in Russia, aiming to hit annual capacity of 4 million tires by 2008, a year ahead of schedule.
Nokian's Vsevolzhsk, Russia, plant is now under roof, and initial production will take place later this year, with production targeted at 1.5 million tires in 2006, the company said. The company budgeted $180 million to build and outfit the plant, near St. Petersburg.
The plant initially will make Nokian-branded passenger tires primarily for the Russia market. It will require about 200 employees in the first phase, Nokian said. The plant eventually will be expanded to a capacity of 8 million tires annually.
At the same time, Nokian is expanding its Vianor distribution chain into Russia. It has budgeted $65 million this year for projects in Russia.