Nokian considering locations for 3rd plant

ESSEN, Germany (May 25, 2016) — Nokian Tyres P.L.C. has narrowed its search for a site for its third plant to North American and Eastern Europe, according to Nokian CEO Ari Lehtoranta, who also acknowledged the company is “also considering the option of maybe getting into a partnership.”

Nokian expects to announce the plant's location by the fourth quarter, Mr. Lehtoranta told European Rubber Journal at this week's Reifen tire trade show in Essen. The plant is slated to open with a capacity of 5 million passenger car tires a year.

Commenting on Nokian's production and strategy in Russia, Mr. Lehtoranta said that the company was committed to that market and its tire plant there.

With the reduction of capacity at its Nokia, Finland, facility, the factory in Vsevolozhsk, Russia, is now the company's main manufacturing site.

“For now, we are [employing] our plant, as our biggest production site,” Mr. Lehtoranta said. “We are not too bothered about the [weakness of] the ruble, as we export so much from the Russian plant.”

Pointing to indicators that the Russian economy is improving, Mr. Lehtoranta said that he expected to see better results from the Russian market by year-end.

This report appeared on the website of European Rubber Journal, a United Kingdom-based sister publication of Tire Business.