September, 23. 2005
YIT to implement the expansion of the Nokian Tyres plant in Vsevolozhsk
Nokian Tyres plc and YIT Construction Ltd have agreed on the construction of an expansion to the tyre plant located in Vsevolozhsk, near St Petersburg. The contract agreement was signed on Friday, September 23. Construction work will start immediately and is scheduled for completion in July 2006. The project will be implemented as a fixed-price total contract valued at EUR 21.5 million.
As part of the expansion, a new rubber mixing facility and warehouse with a total surface area of 37,000 m2 will be built for the Vsevolozhsk tyre plant. Numerous smaller-scale construction works will also be carried out, including regional works on the site and supplementary infrastructure works.
The Vsevolozhsk plant manufactures Nokian brand automotive tyres and its planned production capacity for next year is 1.9 million automotive tyres. This state-of-the-art plant is the second production facility owned by Nokian Tyres and the company will invest about EUR 150 million in it from 20042007. The plant currently has 120 employees and has been up and running since June 2005.
Juha Vättö, YIT Construction Ltds Head of Department, St Petersburg and Northwest Russia, sees the decision to expand the Vsevolozhsk tyre plant as a positive sign of the increase in Western investment in Russia. Russias growing economy and developing markets are reflected favourably in industrial property and residential construction alike. Nokian Tyres is a good example of well-managed and profitable expansion in Russia.
For further information:
YIT Construction Ltd
Juha Vättö, Head of Department
St Petersburg and Northwest Russia,
tel. +358 400 558
Nokian Tyres plc
Esa Eronen, Project Manager,
tel. +358 3 340 7111
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