Black Donuts in €600m project to establish new tire plant in US

Tulsa, Oklahoma – Salina Economic Development Authority, Oklahoma has filed details of a project to build a new $680-million (€600 million) tire factory in Tulsa.

The American Tire Works (ATW) project involving Finnish firm Black Donuts Engineering will have capacity to produce 4.3 million of passenger car tires, a 24 March presentation shows.

Salina Economic Development Authority, Oklahoma, it stated, "will be the owner of the factory," with Black Donuts Oy serving as technology & engineering partner.

To be located at a site adjacent to Tulsa International Airport, the ATW tire facility will produce ‘tier 3’ tires for the replacement market, according to the presentation.

The investment, believe its backers, “will displace a portion of the current Asian imports" and meet demand in the fast-growing private label segment of the US tire market.

Demand for private-label tires, they estimate, will grow by up to three times the current level in the US by 2030, to represent a 21% share of the replacement market.

An off-take 'letter of intent' has been signed with five major distributors: Les Schwab Tires, First Choice Sourcing Solutions, Steve Shannon Tire & Auto Centers, Tireco and US AutoForce.

Led by “a seasoned management team with significant experience in all aspects of tire manufacturing and distribution,” the ATW project is expected to create 500 jobs at full capacity.

ATW's leadership team includes Jeff Schumaker, who will serve as the president, bringing nearly three decades of experience as Cooper Tire executive.

Former Nokian Tyres executive and most recently CEO of Sentury Tire North America Rami Helminen will act as chief financial officer.

Phil Caris, who has over three decades of experience at Cooper Tire and distributors,  will take over as SVP, sales & marketing.

Former Cooper Tire global purchasing VP Mary Pauken will serve as VP procurement while Black Donuts CEO Kai Hauvala will serve as technical advisor to the project.

The overall investment of $686 million includes a $386 million cost of facility construction and $300 million cost of equipment.