Nokian to build $360M plant in Tennessee.
Finnish tyre maker Nokian will build a new $360 million plant in Rhea County, Tennessee, the company announced.
The manufacturing facility will be the tyre maker’s first in North America and third overall. Car and light truck all-season tyres will be produced at the plant to meet growing demand in the US and Canada. Capacity will be 4 million tyres annually with an onsite distribution facility that can hold 600,000 tyres. With the new location, Nokian will be able to shorten lead and delivery times, the company said.
The project in Dayton represents the largest investment in the history of southeastern Tennessee’s Rhea County and will create 400 jobs in the area, according to the Tennessee Department of Economic and Community Development.
Tennessee governor Bill Haslam said Nokian Tyres’ decision was dependent on recent passage of a bill that included tax cuts for manufacturers. Construction of the 830,000-square foot (77,000-square meter) facility is scheduled to begin in early 2018 with completion scheduled for 2020. Nokian recently increased it warehouse capacity with the opening of a Montreal-area distribution center in Canada. In 2016, the tyre maker had about 4,400 employees and net sales of approximately $1.5 billion.