Top quality and efficiency
Nokian Tyresí two own production plants are located in Nokia, Finland and in Vsevolozhsk near St. Petersburg, Russia.
In connection with the Head office, the Nokian plant manufactures passenger car tyres, heavy tyres and truck tyre treads. Product development and the manufacture of prototypes and test batches happen centrally in Nokia. The annual production capacity of the Nokian plant at the end of 2010 was around 5 million passenger car tyres and 15 thousand tonnes of heavy tyres. The products are delivered mainly to western markets.
The ultra-modern plant in Vsevolozhsk was brought into use in 2005. Its capacity at the end of 2010 was around 8 million passenger car tyres (number corrected on 18 March 2011). Tyres from Vsevolozhsk are sent to over 20 countries, and Nokian Tyres is the largest exporter of consumer goods in Russia. The plant is still being expanded; it has been decided to install production lines 9 and 10 and take them into use during 2011.
The production costs of tyres are clearly lower in Russia than in Finland and other western countries. Production in Russia has been supported by tax relief based on the amount of investment and the location of the factory within customs barriers (in Russia, imported tyres have a customs duty of 20%).
In addition to its own production facilities, the company has contract manufacturing in companies whose quality level meets Nokian Tyresí high requirements. The share of contract manufacturing in manufacturing operations sales in 2010 was around 6%.