Finland-based Nokian Tyres will invest $360 million to build a new tire manufacturing facility, 38 miles north of Chattanooga, in Dayton, Tennessee. The company plans to create at least 400 new jobs in Rhea County.

Nokian Tyres’ new Tennessee facility will focus on manufacturing passenger, SUV and light-truck tires. The company will begin construction on the new 830,000-square-foot facility in early 2018, and the facility is expected to be completed in 2020.

The company supplies innovative tires for cars, trucks and special heavy machinery mainly in areas with special challenges for tire performance including snow, forests and harsh driving conditions in different seasons.

“The factory is above all a strategic decision to continue and enable Nokian Tyres' growth path,” Nokian Tyres’ Chairman of the Board of Directors Petteri Walldén said. “The total sales of tires is estimated to grow in coming years. With this investment, we will get the needed capacity for growth. And while the Dayton factory clearly enables us to serve our North American customers better and more efficiently, it also improves our production capabilities and customer service throughout our global operations.”

“Selecting a North American site shows our commitment to our customers in one of our most important growth areas,” Nokian Tyres’ Interim President & CEO Andrei Pantioukhov said. “The Dayton/Rhea County site was selected based on several factors, including skilled workforce availability, logistical advantages and a business-friendly administration. After thorough investigation, it was clear that Tennessee was the best choice for the factory, and we are proud to become part of the community.”

“Nokian Tyres’ decision to locate its new operations here is a tremendous win for Rhea County and our state, and we want to thank Nokian Tyres for its decision to invest in Southeast Tennessee,” Governor Bill Haslam said. “We’ve worked hard to create the best possible environment for job creation, and the recent passage of the IMPROVE Act played a critical role in attracting this great company to Tennessee. Today’s announcement speaks volumes about Tennessee’s competitiveness in the global marketplace.”

“I appreciate Nokian Tyres for making this significant investment in Dayton and for choosing Rhea County as the location for its new manufacturing facility,” Department of Economic and Community Development Commissioner Bob Rolfe said. “With the creation of these 400 jobs and the substantial investment of $360 million, Nokian Tyres’ choice in selecting the rural community of Dayton will be an enormous boost to Rhea County and its citizens as well as the state of Tennessee as a whole. I look forward to our future relationship with Nokian Tyres, and I am excited to watch this company grow in our state.”