MOSCOW (July 10, 2002) – Finland's Nokian Tyres P.L.C. and Russia's Amtel Holding are planning to form a joint venture company to make and market Nokian and Nordman branded tires in Russia and other former Soviet states.
The partners, already linked through an off-take manufacturing agreement signed earlier this year, will invest $110 million through 2007 to upgrade facilities at Amtel's Voronezh, Russia, tire plant, according to their letter of intent. The venture's annual capacity is expected to reach 3 million car, light and heavy truck tires by 2007.
The 50/50 venture likely will be called Amtel-Nokian Trading, Nokian said.
“By combining the strengths of Nokian Tyres and Amtel…we expect to create a more efficient organization committed to the needs of our customers in (Confederation of Independent States) countries,” said Nokian Tyres President Kim Gran.
Amtel Holding claims a market share in the CIS of approximately 30 percent, including market leadership in bicycle, motorcycle and aviation tires; it also has holdings in the carbon black and textile reinforcements industries.
The final agreement is expected to be signed by this fall.