Finnish tyremaker Nokian Tyres has broken ground on the site of its US$360 million manufacturing facility in Dayton, the county seat of Rhea County in Tennessee, US.
Nokian Tyres executives selected the Dayton site for several reasons, including its rail access. Tracks run parallel to the huge 250-acre plot of land.
This is the company’s first facility in the US, and also a first for Rhea County.
“They’ve announced they’re going to create at least 400 jobs and invest US$360 million, which if I’m correct is the largest foreign direct investment in the history of Rhea County,” said Tennessee Governor Bill Haslam.
“Nokian Tyres’ US$360 million investment in the Dayton facility is another direct measure of our ‘Investing in North America’ strategy and reflects our commitment to our customers and the growing consumer demand for our products in North America,” said Hille Korhonen, CEO, Nokian Tyres. “With increased plant capacity we will be able to add new North American specific products, reduce delivery times and strengthen our overall ability to serve our customers throughout the US and Canada.”
During the ceremony, Korhonen reaffirmed the company’s ambition to doubling sales in the next five years within North America. She also highlighted Nokian Tyres’ goal to lead the tyre industry in sustainable manufacturing as well as making sure the company is the employer of choice within the greater communities it serves.
In addition to the groundbreaking ceremony, Korhonen will be meeting with Nokian Tires’ customers, hosting a reception for the local community, as well as speaking with students from Rhea County High School to share her experiences and talk about continuous learning. Korhonen was appointed CEO and president of Nokian Tires by colleagues on the tire maker’s board of directors, serving in this role since June 1, 2017.
Dennis Tumlin, the Executive Director of Economic Development for Rhea County, says the county and city agreed to waive millions of dollars in property taxes for Nokian to attract them to the area.
Documents from the Tennessee Comptroller’s Office show Nokian will not have to pay any city or county property taxes for 20 years. Starting in 2038, the company will be required to pay the portion of property taxes that funds local schools.
Under the provisions of the tax break agreement, Nokian has to provide a minimum of 320 jobs by 2023.
In a letter approving the tax break agreement, Comptroller Justin Wilson writes, “The economic benefits of the project are far-reaching and provide numerous benefits to the city of Dayton, Rhea County, and the state of Tennessee.”
“I would love for us to not give incentives to anyone but that’s not realistic because all of our competitors, our neighboring states are all doing that so we could say we’re not playing that game but these jobs would go somewhere else,” Gov. Haslam insisted.
Nokian officials say the plant should be ready for production in just over two years.
“It will alter the course of economic history for this community,” Tumlin said. “These people will also go to Chattanooga on the weekends, spend their money eating, dining, shopping, enjoying the fine quality of living in Chattanooga. It’s great for the regional economy.”