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Fri June 13 12:00 am 2003 in category Stock exchange releases
Nokian Tyres plc Press Release June 13, 2003 at 10.15

NOKIAN TYRES TO PURCHASE A RETREADING PLANT IN ST. PETERSBURG AND TO REORGANISE ITS RETREADING BUSINESS

Nokian Tyres has purchased a retreading plant called Euroban-dag in St.Petersburg, in Russia. In addition, the company will reorganise its retreading business in Nordic countries by establishing a new profit centre to manage Group's retreading operations.

Net sales of Euroban-dag in 2002 were EUR 0,5 million, and it retreads approximately 2000 truck tyres per year. The seller company was Vuoksen Kumi Oy. The plant has operated in St. Petersburg since 1994 and it employs 11 people.

The purpose of the acquisition is to strengthen company's position in Russia, where the sales of new truck tyres and retreading materials are rapidly increasing.

Retreading operations to be centralised

Nokian Tyres is establishing a new profit centre to manage its retreading material production and business. The new unit will start its operations in the beginning of next year. The unit will be responsible for the retreading material production, Vianor's retreading plants and the related purchasing operations.

The concentration of the retreading business is expected to improve company's competitiveness in the Nordic countries, where the closure and concentration of small retreading plants is an increasingly common phenomenon. The change will also clarify Vianor tyre chain's role in the sales and marketing of products and services.

The entire personnel of Vianor's retreading plants in Finland, Sweden and Norway will transfer to the new profit centre. The plants have 45 employees in Finland, 65 in Sweden and 7 in Norway. The 12 employees involved in Nokian Noktop retreading material production at the Nokian Tyres plant in Nokia will also be part of the new profit centre. The recruitment of the profit centre manager is currently underway.

Nokian Tyres plc

Raila Hietala-Hellman
Vice President, Communications and IR

Further information:

Mr. Kim Gran, President and CEO, Nokian Tyres plc,
tel. + 358 3 340 7336 and
Mr. Seppo Kupi, Managing Director, Vianor Holdig Oy,
tel. +358 3 340 7634 or +358 500 551 374