Nokian Starts Tyre Manufacturing At New US Facility
Published On 2020-03-11 18:02:17 278 views
The new North American tyre factory of the Finland-based Nokian tyre maker was announced in 2017 at an investment of $360 million
The Finnish tyre manufacturer, Nokian Tyres has begun production at its newly opened US plant in Dayton, Tennesse. In a bid to diversify its reliance on sole winter tyres, the company decided to venture in all season tyres to cater to wider audiences. Another reason for diversification is the mild winter conditions which have started to hit its revenues.
The facility will be producing all-season and all-weather tyres to specifically cater North American consumers. As per Nokian, the production will be at its peak by 2023 churning out 4 million tyres per year. The plant has already employed 100 workers and is likely to hire 300 more in the coming days.
It is located 40 miles north of the Chattanooga town in Tennessee. Mark Earl, the Nokian’s senior vice president in-charge of America said the factory will help in meeting the rising demands and reduce the waiting period for tyre deliveries.
The Nokian tyres is a specialist of winter tyres and the only tyremaker in the world to have a permanent winter tyre testing facility at Ivalo Proving Ground, Arctic Lapland. Around 70 per cent of the sales of the tyre manufacturer are from winter tyres.
Headquartered in Nokia, the Nokian Tyre has reiterated its sales strategy to push its sales in the North American market. It plans to double its sales by 2023 from the earlier 194.5 million euros ($217 million) which is slightly above the 12 per cent of its total sales in 2018.
The impact of coronavirus is felt in the tyre industry as well. The shares of the tyre manufacturers are constantly falling on the fear of shrinking global economy. Due to slump in automotive sales, the tyre industry was already reeling losses and the emergence of coronavirus is likely to fuel the fire.