Nokian Tires announced it is partnering with Clayco to design and construct its new $360 million manufacturing facility to be built in Rhea County, Tennessee.
“We’re delighted to partner with Clayco, an industry leading design-builder, on the development of our state-of-the-art manufacturing facility,” said Tommi Heinonen, Head of Nokian Tires North America. “Since the groundbreaking ceremony in September last year, our team and the local community partners have made great progress to finish the ground work and maintain our schedules. The selection of Clayco as design build partner is another great step towards our investment in North America.”
Once completed, the Dayton facility will strengthen Nokian Tires’ ability to serve customers throughout the US and Canada by increasing the company’s capacity to produce North American-specific products and reducing delivery times.
As the design build partner, Clayco will manage the manufacturing portion of the site, including managing all of the sub-contractors. The tendering process for the administration building that will also inhabit the factory site will initiate in the late spring.
“We are pleased to partner with Nokian Tires and are eager to begin designing and constructing an innovative manufacturing facility in the Dayton area,” said Clayco Executive Vice President and Shareholder Anthony Johnson. “Our fully integrated portfolio of capabilities, services and technology allows us to provide a turnkey design-build approach that delivers precision planning and execution which keeps our projects on schedule and on budget, and enables our clients such as Nokian Tires to reach their production goals.”
More about the Dayton manufacturing facility
With production launching in 2020, the new plant will service customers across the United States and Canada, concentrating on the production of North American-specific car and light truck all-season tires. The Tennessee location will increase production and warehouse capacity, allowing Nokian Tires to meet the increasing demand throughout North America.
The new plant will be capable of producing 4 million tires annually with the room for expansion to meet future demand. The site will also house a distribution facility with a storage capacity of approximately 600,000 tires.
Additionally, the plant will create up to 400 new jobs in Rhea County, Tennesee, with about half of the total investment flowing into the local economy.
The new facility is another step forward for Finland-based Nokian Tires in North America, as the manufacturer continues to lay the foundation for growth through investments in its people, products, customers, marketing and logistics.