According to media reports, a new company led by former executives from Nokian Tyres and Cooper Tire plans to build a tire factory near Tulsa, Oklahoma, specifically for producing tier-three private label tires for the North American market.
American Tire Works L.L.C., headquartered in Delaware, was founded in November 2024 and is primarily backed by Finnish investors.
According to the Salina (Oklahoma) Economic Development Authority, the project plans to borrow $1.15 billion through revenue bonds issued by the Wisconsin Public Finance Authority, with Finnish Black Donuts providing tire manufacturing technology.
The project plans to produce 4.3 million tires annually, with an investment of $686 million for constructing and operating the factory. The factory will feature high levels of automation and operate using renewable energy.
The factory plans to start production as early as 2027, primarily manufacturing large-diameter tires for SUVs and light trucks. The facility spans 155 acres and is located near Tulsa International Airport. By 2029-2030, the company expects annual sales to approach $450 million. At full capacity, the plant will employ around 500 people, with direct wages totaling nearly $26 million.
The company stated that it will recruit experienced industry professionals from Michelin North America's factory in Ardmore, Oklahoma, which plans to close by the end of the year.
The company's business plan indicates that sales of private label tires in the United States are expected to grow at a rate up to three times the overall market growth rate between 2023 and 2030. By 2030, private label tires are projected to account for 21% of aftermarket light vehicle tire sales, compared to the current 18%.
In 2024, sales of third-tier tires in the U.S. market were booming. Despite an economic downturn, third-tier tires outperformed first and second-tier tires, becoming the market leader. This success led to the company's establishment, with third-tier tires being its flagship product.
DLFTECH is a professional equipment marketing & service company built by a senior R&D and marketing team in the tire & conveyor belt equipment industry. Benefiting from the rapid follow up of the international rubber industry's process re-engineering and the demand for industrial intelligence. Select DLFTECH, so you have the best solution, always!
If any tire or conveyor belt industry customers need such as tire mold laser cleaning system, anti-puncture tire coating system, tire hydraulic curing press etc., please feel free to contact info@delphygroup.com.
