New firm proposes U.S. tire factory in Oklahoma

TULSA, Okla. — A new company helmed by former Nokian Tyres P.L.C. and Cooper Tire & Rubber Co. executives is proposing to build a tire factory near Tulsa dedicated to producing Tier 3 private-brand tires for North American markets.

American Tire Works L.L.C. (ATW), the entity behind the initiative, is a Delaware-based company formed in November 2024. It is a unit of American Tire Works Oy of Finland, which is backed principally by Finnish investors.

The project, which proposes the construction of a factory capable of producing up to 4.3 million tires annually, got a boost recently when the Salina (Okla.) Economic Development Authority disclosed it plans to borrow $1.15 billion through a revenue bond being issued by the Wisconsin Public Finance Authority.

Finnish engineering firm Black Donuts Engineering Oy will provide the product and process technology, according to a presentation by ATW, which indicates the factory could be on stream as early as 2027. Production would be skewed heavily toward larger-diameter tires for SUVs and/or light trucks.

The 155-acre plant site is on land near the Tulsa International Airport and owned by the Tulsa Airports Improvement Trust. The company projects annual sales approaching $450 million by 2029/2030, with a pre-tax operating income ratio of roughly 35%. Employment will be about 500 at full capacity, ATW said, which would represent a direct payroll of nearly $26 million.

The company indicates in its presentation that the project would have the opportunity to recruit experienced industry professionals from Michelin North America Inc.'s Ardmore, Okla., factory, which is scheduled to close by year-end.

ATW puts the investment necessary to build and open the factory at $686 million. The remainder of the $1.15 billion bond issue would be held in reserve as working capital if needed.

The city of Tulsa will own the property the factory will be built on. ATW will lease the factory, according to the ATW presentation to potential investors.

ATW said in its presentation it expects the factory to have a smaller footprint (roughly 1 million square feet) than comparable factories in existence, be highly automated and run on renewable energy.

The ATW executive team comprises:

• Jeff Schumaker, a 24-year veteran of Cooper Tire, president;
• Rami Helminen, with over 25 years of tire industry experience — including 20 at Nokian Tyres — chief financial officer;
• Phil Caris, with 33 years experience at Cooper Tire — including 13 years as vice president, sales and marketing — is senior vice president, sales and marketing; and
• Mary Pauken, who spent 13-plus years with Cooper Tire, vice president, purchasing.

The company's business plan notes that sales of private-brand tires in the U.S. are projected to grow at up to three times the overall market growth rate over the 2023-2030 period, accounting for up to 21% of aftermarket light vehicle tire sales by 2030, versus 18% currently.

The project states in its presentation it has signed distribution agreements or letters of intent from five major wholesale distribution companies: Les Schwab Tires; First Choice Sourcing Solutions; Steve Shannon Tire & Auto Centers; Tireco Inc.; and U.S. AutoForce.