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January 15, 2003 01:00 AM

Matador to make tires for Nokian for eastern Europe

Tire Business Staff
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    NOKIA, Finland (Jan. 15, 2003)—Slovakia's Matador A.S. will make Nokian-branded summer tires for Finland's Nokian Tyres P.L.C. under a contract manufacturing agreement the two companies have signed.

    Matador will make S-, T- and H-rated summer tires at its factory in Puchov, Slovakia, for distribution in eastern European markets. Production capacity freed up at Nokian's Nokia factory will be converted to capacity for ultra-high-performance tires.

    Nokian said contract manufacturing helps ensure its growth potential in the growing markets of eastern Europe.

    The contract initially is for three years and renewable annually thereafter, Nokian said. Production is scheduled to begin in the next few months, with a first-year target of 100,000 units, increasing to 300,000 tires during 2004- 2005.

    Nokian also recently set up a joint venture in Russia to have Nokian-brand tires produced there for sale throughout the former Soviet Union.

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