Former Cooper and Nokian managers propose building a tire plant in Oklahoma
A new company led by former managers of Nokian Tyres and Cooper Tire is offering to build a new plant near Tulsa, Oklahoma, USA, to produce budget tires under private brands for the North American market.
The initiative is being put forward by American Tire Works LLC (ATW), a company established in Delaware last autumn and part of the Finnish American Tire Works Oy, which operates mainly with the support of local investors.
According to ATW's plans, the Finnish engineering firm Black Donuts Engineering Oy will develop the products and technologies, and the plant may be launched in 2027. Production will be largely focused on the production of large-diameter tires for SUVs and pickups, popular in the US. The plant is planned to be built on a land plot near Tulsa International Airport, and ATW predicts that by 2029-2030, sales will approach $450 million, and the plant's operating profitability will be around 35%. It is expected that the plant will employ around 500 people at full capacity, and the direct wage fund will be equal to almost $26 million.
In its presentation, ATW indicates that within the framework of the project, it will be possible to attract experienced specialists who currently work at the Michelin plant in Ardmore (Oklahoma), which is scheduled to close at the end of the year.
The media report that the project, which involves building a plant with a capacity of up to 4.3 million tires per year, has recently received support, as the Salina Economic Development Office announced plans to borrow $1.15 billion through the issuance of revenue bonds issued by the Wisconsin State Financial Office. The company estimates the necessary investments at $686 million, and the remaining part of the bonds will be kept in reserve as working capital in case of need.
The land on which the plant is to be built will belong to the city of Tulsa, and ATW plans to lease it. The company notes that the complex will be smaller in area (around 90,000 m2) compared to other similar plants, will have a high level of automation, and will use energy from renewable sources.
The ATW management includes President Jeff Schumaker (24 years at Cooper), Financial Director Rami Helminen (25 years of experience in the tire industry, 20 of them at Nokian), Senior Vice President of Sales and Marketing Phil Caris, and Vice President of Procurement Mary Pokin (worked at Cooper for 33 and 13 years, respectively).
The company's business plan states that, according to forecasts, in 2023-2030, sales of tires under private brands in the US will grow three times faster than the overall market rate, and by 2030, their share in the secondary market for passenger tires will increase from the current 18 to 21%. ATW has already agreed on possible cooperation with five major American distributors: Les Schwab Tires, First Choice Sourcing Solutions, Steve Shannon Tire & Auto Centers, Tireco, and US AutoForce.
Image: ATW