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Mon May 31 12:59 pm 2004 in category Stock exchange releases
NOKIAN TYRES PLC PRESS RELEASE 31 May 2004

CONTRACT AGREEMENT ON NOKIAN TYRES PLANT IN ST. PETERSBURG SIGNED

Nokian Tyres plc and Lemcon Ltd, a subsidiary of Lemminkäinen Group, have signed a contract concerning the construction of a tyre plant in Vsevolozhsk, near St. Petersburg. The contract, worth approximately EUR 21 million, was signed in Nokia on 28 May.

Earthwork for the new Nokian Tyres plant facility commenced in early May. The foundation stone will be laid on 23 June 2004, and the first phase of the construction should be completed next year. Investments in the project this and next year will total some EUR 52 million. The plant will be wholly owned by Nokian Tyres. It will start production in 2005, and the objective is to manufacture approximately 1.5 million tyres in 2006.

The part of the plant completed in the first phase will have a total area of some 21,000 square metres, which provides capacity for producing approximately 4 million tyres annually. The plant will be gradually expanded with additional investments, aiming at a capacity of some 8 million tyres after 10 years. Most of the plant machinery will be new and as automated as possible. In addition, a lot of attention has been paid to minimising environmental impacts.

The plant will be manufacturing Nokian-branded passenger car tyres, which will primarily be sold on the growing Russian market. In the initial phase, the plant will employ approximately 200 people, most of whom will be Russian. Nokian Tyres will start training the new personnel in the autumn.

For further information, please contact:

Nokian Tyres plc
President and CEO Kim Gran, tel. +358 3 340 7336
Production Service Manager Esa Eronen, tel. +358 3 340 7281
Vice President/Communications and IR Raila Hietala-Hellman, tel. +358 3 340 7298

Lemcon Ltd
Area Director Jussi Ovaska, tel. +358 40 554 9854