British owner expands Finland’s only bicycle tyre factory sixfold

British-owned Dmack has increased production at Finland’s only bicycle tyre factory in Lieksa, a town in North Karelia, sixfold in less than three years, Yle reports. The Suomi Tyres factory now produces about 300,000 tyres a year.

Dmack bought the factory from the bankruptcy estate of its previous owner and has invested about 2.5 million euros in the plant. The workforce has grown to 36, with around 20 more employees expected to be hired by next summer.

The factory has a 20 per cent share of the Northern European market for studded bicycle tyres. Most of its products are exported, and company owner Dick Cormack says it holds about 40 per cent of the Nordic market for bicycle winter tyres.

Cormack, who lives in northern England, built his career in motorsport. His company Dmack was an official tyre supplier to the World Rally Championship from 2011 to 2017, and rally tyres remained its main product until recent years.

The company bought the Lieksa factory after its previous operator, known for the Suomi Tyres brand, went bankrupt. Cormack initially planned to move the machinery and production to Italy, but changed his mind after learning more about the factory’s history and employees.

Bicycle tyres have been made in Lieksa for more than 50 years. Winter tyres have been the factory’s main product for most of that time.

“They require specialist expertise, which is available here. The employees are experienced and committed, so the decision to stay was easy,” Cormack said.

Dmack plans to improve the availability of its products in Europe and expand into summer tyres for certain specialised bicycles. The company is also interested in the North American winter tyre market.

Cormack visits Lieksa once a month and expects the factory to employ more than 100 people again within five to 10 years. The plant has previously employed well over 100 workers.

Lieksa Mayor Pirre Seppänen said the city had helped Dmack apply for investment support. She said preserving the specialised industry in Finland was in everyone’s interest, particularly because new jobs are uncommon in Lieksa.