Nokian Tyres plc and Chinese tire maker Qingdao Sentury Tire Co., Ltd. have signed a contract manufacturing agreement to supply Nokian tires to the central European market.
In a statement 19 Dec, Nokian said the tires manufactured at the partner’s production facility are designed by the Finnish tire maker and have been tested in its facilities.
Production of the tires is set to start at Sentury Tire’s production facility in China in the first half of 2023, with the first tires scheduled to reach the market in the second half.
Nokian said the manufacturing site will be regularly audited according to its quality, sustainability and safety requirements.
The Chinese tire maker currently operates a 15 million units/year plant in Jimo, Qingdao, Shandong and a site in Rayong, Thailand, with a capacity of 5 million units/year.
Earlier this year, Sentury said it was planning to build a €522-million passenger car and light truck radial tire production facility in Galicia, northwest Spain, as part of its major global growth strategy.
To be sold under the ‘Nokian brand’, the tires meet Nokian’s “high requirements for safety and quality,” the Finnish tire maker said in its release.
In addition, Nokian said it was also in the process of negotiating additional contract manufacturing agreements, but did not specify partners.
The Finnish tire maker estimated the total annual volume of the agreements – running between 2023 and 2027 – to come in between 1 to 3 million units.
The tires will be in addition to Nokian’s existing production at its own facilities in Nokia, Finland and Dayton Tennessee.
Along with contract-manufacture, Nokian said it is advancing efforts to increase its own production and will progress the construction of its €650-million tire plant in Romania.
“We have started to build the new Nokian Tyres without production in Russia, and contract manufacturing is an essential part of these plans,” said president and CEO Jukka Moisio.
“With the new factory in Romania, increasing capacity in Finland and the US and the contract manufacturing [agreement], we are laying a strong foundation for Nokian Tyres’ future growth,” he added.
Source : European Rubber Journal
