Members of the Nokian staff, State Economic Development, Rhea County and city of Dayton just before touring the plant. From left to right are Interim Dayton City Manager Tammy Colvin, Dayton Mayor Hurley Marsh, County Executive Jim Vincent, Plant Manager David Korda, Vice President of Sales Tommi Heinomen, Sam Willis, Regional Director of Economic Development, Dennis Tumlin Chief Customer Officer for the State of Tennessee Department of Tourist Development, who was Executive Director, Rhea/Dayton Rhea Economic and Tourism Council, John Bamber current Executive Director
David Korda, plant manager, addresses audience
County Executive Jim Vincent makes remarks
Tommy Heinomen welcomes state and local officials
Plant Manager David Korda leads tour showing components of tire
Dennis Tumlin and Sam Wills observe production
County Executive Jim Vincent watching storage of tires
one of the many automated carriers that move product around the plant
Nokian's 830,000 square feet current building. Facility parking is under the solar panels.
In a press conference Wednesday morning Nokian officials along with Tennessee Department of Economic and Community Development Regional Director Sam Willis, County Executive Jim Vincent, Dayton Mayor Hurley Marsh and Interim Dayton City Manager Tammy Colvin announced that Nokian Tires will create 75 new jobs at its Dayton, Tennessee factory in 2023, as the company aims to double tire capacity at the award-winning facility.
The company celebrated the start of the capacity expansion, which also includes an on-site storage warehouse, at an event on Wednesday with state, local and company officials.
Tennessee Department of Economic and Community Development Commissioner Stuart McWhorter was supposed to attend to represent Governor Bill Lee, but was grounded in Nashville due to FAA restrictions of flying because of a computer glitch.
Wes Boling, marketing communications director from Nokian served as MC of the event introducing the guest speakers.
Vice President of Sales Tommi Heinomen said, “For the employees of Nokian at the factory in Dayton we would like to thank all the state officials and local and county officials for their support. We want to double our sales in North America, and we can’t do it without this factory. What the factory means to me its not only the building but it’s the it’s the great product, the innovations that we are doing and its all about the people that’s inside the building. What a journey this has been. But it’s not over yet.”
Plant Manager David Korda said that Nokian is getting better and better at making the tires and now “we have reached our full potential of this part of Phase I capacity. We are ready to move on to Phase II to double our capacity. This is the next logical stage in our development. We have known that this is coming for a long time. And we are announcing the 75 jobs along with the new equipment.
The equipment is just equipment. It will just sit there. The life blood of Nokian is the people. To the members of Rhea County we extend the offer to come join us in this journey we are taking together. If your willing to be challenged, to grow, to develop, work hard you can have a career here and support and grow your families here and your can grow and develop here.”
County Executive Jim Vincent said, "It was such and honor to be at the announcement today. I just want to say to the Nokian team you are welcome to Rhea County and you are appreciated and you are part of the Rhea County family,”
Mr. Vincent continued to say that in talking with parents in Rhea County that the Nokian plant solves a long standing problem. “One of the biggest concerns is that they raise their children here, send them to school and they move off to get a job. You (Nokian) have solved this problem. And that is huge.”
Mr. Vincent went on to say that he appreciates Governor Bill Lee and that he has a desire to develop rural counties in Tennessee. “I really appreciate that. He told us that when he was campaigning and I want to publicly thank him," he said.
He also thanked officials with the city of Dayton, saying, “It takes a team to do something this nice and beneficial, I am so thankful you are here.”
The new jobs and warehouse represent a $174 million investment. A portion of that figure was included in the company's originally announced investment in Dayton, while the jobs represent additional investment in the Southeast Tennessee workforce.
The company’s application portal is open and hiring will begin this spring. Starting pay for the positions ranges from $17 to $21 per hour.
When Nokian Tyres opened its North American factory in 2019, it committed to bring 400 jobs to Rhea County. As the company adds positions and equipment this year in pursuit of full capacity approaching four million tires per year, it is partnering with the state and community to raise that total number of employees to 475.
“We strive to be an employer of choice in Southeast Tennessee, and that has been our focus since day one of our operations,” said Dayton Factory Operations Director David Korda. “As we grow, we’re excited about providing fulfilling opportunities for professional growth that will also help our factory and company grow.”
Nokian Tyres also announced on Wednesday the construction of a 600,000-tire warehouse connected to the Dayton Factory in line with the original investment plan. The facility will join the company’s nine-warehouse network throughout the U.S. and Canada and will serve the growing volume of customers in the sun belt. The company plans to bring the warehouse online by mid-2024.
The factory set production records with existing equipment in 2022, and the company has begun installing additional infrastructure inside the factory to meet its goal of producing up to four million tires per year – a milestone it plans to reach in 2024. The company makes all-season and all-weather tires at the facility, which is the epicenter of its growth plan in North America. The expansion will enable Nokian Tyres to add light truck tires to the Dayton Factory’s product mix in 2023.
In its first three years of operations in Dayton, the company has earned recognition for its workplace culture, operations and sustainability. Nokian Tyres was the Chattanooga Regional Manufacturers Association’s Company of the Year in 2021, and the company was the first in Rhea County to receive the prestigious Tennessee Governor’s Environmental Stewardship Award.
The Dayton Factory’s production building is the only tire production facility in the world to possess LEED v4 Silver certification, and its LEED v4 Gold-certified administration building is fully powered by energy generated from onsite solar panels.
Chattanoogan.com was able to get an exclusive interview with VP of Sales Tommi Heinonen.
Questions asked Mr. Heinonen are in bold.
Why did Nokian Tyres branch out into North America?
Nokian Tyres has been in North America for 40 years. North America is a very important strategic growth area. Our market share has been relatively small here. We see tremendous opportunity to grow here and provide premium products for North American consumers.
What do you mean by premium products?
Our aim is to provide the safest tires for the market. For us, “premium” starts with safety and also includes sustainability. Our Dayton Factory is a great example of sustainability and safety. That’s what we consider “premium” – safety and sustainability is where it starts.
What kind of improvements will we make at the Dayton Factory?
In Dayton, we are installing more machinery and increasing the capacity, creating 75 new jobs there. We are also building an onsite warehouse. That’s a big thing for us. There will be 600,000 tires onsite. It’s a huge warehouse and a remarkable landmark. We are reaching full capacity of up to four million tires per year and a warehouse of 600,000 tires, while employing 75 people or more.
Are you concerned with global shortages of products?
One reason we have a factory in the U.S. is we want to be closer to our customers and less dependent on global trade markets. There was a clear opportunity for us to build a factory. When most of our North American products are built in Dayton, we are less dependent on global trade. Short-term hiccups are not hurting us much in the future when we have local production. The global freight situation is not impacting us much anymore. The situation is getting better all the time. The Dayton Factory is a great benefit. It shortens lead time to our customers. It’s always good to be close to our customers.
There are two places in Dayton that sell your tires.
We are working all the time to improve our retail presence. We are opening more customers all the time, and we are happy our tires are now available in Dayton.
How do you expect the factory to evolve?
From day one, it has been very important. Now it is a critical part of our growth in North America. I hope someday we have more news about Dayton. My aim is to sell more tires and make sure we need more manufacturing in Dayton.
We have felt welcome from day one. When we were searching for sites, we had 80 sites [to choose between]. From day one, we felt this place was very welcoming of business. We have felt this is the correct place to be. I always use the saying that “business goes where it’s welcome, but stays where it’s appreciated.” We feel appreciated in Dayton, and we are happy to be in this area. Tire factories are always built for decades, not just for a year or two. I see a bright future for our cooperation.
How have you found the workforce?
Any manufacturing facility needs skillful people. Our factory is no different. Industry is more high-tech than it used to be. We have been able to find exceptionally good people in Dayton and Rhea County. We also feel that local authorities have helped us find good people. We feel welcome and we feel people are happy working with us. We are always impressed with the talented and motivated people we are able to find in Dayton. It’s mutual benefit and mutual commitment. We are happy we are in Dayton, and we definitely feel we made the right decision to build our factory in Dayton. We’re happy to announce more jobs and more investment in this area. It’s a mutual commitment, and it’s made for decades. As demand for our tires grows in the United States and Canada, our expanded Dayton Factory will supply customers with a rising number of safe, sustainable all-season and all-weather products. We are happy to see the factory provide more jobs for North American workers and more tires for North American drivers.
About the Dayton Factory
Nokian Tyres opened its North American production facility in 2019 and began producing tires there for commercial use in January 2020