The manufacturer of premium winter tyres says it currently lacks capacity to meet the continuously growing demand. Nokian Renkaat is evaluating whether to locate the new facility near its existing plant in St. Petersburg, Russia, or in Eastern Europe. The company says it will decide on the location in the first half of 2011. Ground-breaking is expected in late 2011 or early 2012.The new plant will require an investment of EUR 200 million and will have a capacity of more than 6 million tyres per year. In addition, the company will expand the capacity of its St. Petersburg plant from the current 8 million to 11 million tyres per year.