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Fri September 23 09:59 am 2005 in category Stock exchange releases
Nokian Tyres plc
Press Release 23 September 2005

CONTRACT AGREEMENT SIGNED FOR EXPANSION OF NOKIAN TYRES' RUSSIAN PLANT

Nokian Tyres plc and YIT Construction Ltd signed a contract agreement concerning the expansion of the Vsevolozhsk tyre plant. The contract agreement covers construction of a mixing department and warehouse. The contract, worth approximately EUR 21.5 million, was signed in Vsevolozhsk on 23 September. Construction work will begin immediately and is scheduled for completion at the end of July 2006.

The contract agreement for plant expansion comprises two buildings: the initial phases of a mixing department and a warehouse building. The mixing department is about 20,255 m2 in size and the warehouse building about 16,600 m2. The contract also covers, for example, completion of regional works and infrastructure on the site.

Nokian Tyres’ new Vsevolozhsk plant was officially inaugurated on 22 September. Manufacturing of Nokian-branded passenger car tyres has already begun, and the first products were turned out in June 2005. Production volumes for the current year are estimated to be about 300,000 tyres.

The new ultra-modern plant is one of Nokian Tyres' two main production facilities in which the company will invest some EUR 150 million in 2004–2007. Investments in 2005 will total approximately EUR 55 million. The plant presently employs some 120 people.

Production volumes for 2006 are expected to reach 1.9 million passenger car tyres. The target for 2008 is to increase the production volume to 4 million tyres.

For further information, please contact: Nokian Tyres plc

Project Manager Esa Eronen, tel. +358 3 340 7111