Fri December 20 12:00 am 2002 in category Stock exchange releases
Nokian Tyres plc Stock Exchange Release, Dec.20,2002 at 8.30 a.m.


Nokian Tyres plc and Amtel Holdings B.V. have signed a joint venture agreement on December 19,2002. The purpose of the joint venture is to organise and carry out the development, production and sales within the CIS of passenger car and light truck tyres, which are branded and sold under the Nordman, and Amtel trademarks. The closing is intended to take place within 180 days after signing.

The parties will form a joint venture company for the sales of the products. Nokian Tyres will have 50% and Amtel 50% of OOO Amtel-Nokian Tyres registered in the Russian Federation. The products will be manufactured at Amtel factories in Kirov and Voronesh, the Russian Federation, and in Rosava, Ukraine. Targeted amount of production for the joint venture in 2003 is 900.000 tyres and 3,600.000 tyres in 2004. Amtel will be the leading partner in manufacturing the Nordman and Amtel branded tyres for the joint venture.

The upgrade and increase of capacity requires investments of about 25 million USD to Voronesh and Kirov factories in 2003 and 2004. The parties will arrange the financing jointly. Nokian Tyres' share will be approximately 10 million USD.

Nokian Tyres and Amtel intend to develop partnership further to increase production capacity and supply to the joint sales company by investing on a greenfield factory in Russia. The new production facility will produce high quality premium tyres with Nokian Tyres brand. Nokian Tyres will be the majority leading party in the greenfield factory project. The first stage production target is 1,2 million tyres per year within three years after final acceptance of the project.

Nokian Tyres plc

Raila Hietala-Hellman
Vice President, Public Information

Further information: Mr. Kim Gran, President and CEO,
Tel. +358 3 340 7336

Distribution: HEX and major media