NOKIA, Finland (Aug. 7, 2000) — Nokian Tyres P.L.C. and Group Michelin have agreed to set up a partnership through off-take production of car and heavy truck tires. The companies did not specify whether they would be making tires for each other, or only one for the other.
The main objective is to focus on core product groups and improve productivity, Nokian said. The agreement, to be finalized by the end of September 2000, does not exclude cooperation with other tire makers, the company said.
Earlier this year, Nokian said it was negotiating several cooperation deals that would allow it to outsource lower end tires and free up space at its factory in Nokia for higher value-added products. Late last year Nokian ended a two-year off-take agreement for agricultural and industrial tires with Romania´s Tofan Grup.