NOKIA, Finland (June 13, 2003) — Nokian Tyres P.L.C. has bought a retreading plant in St. Petersburg, Russia, and announced plans to reorganize its growing retreading business.
The newly acquired retreading plant, called Eurobandag, is a 9-year-old operation producing 2,000 truck retreads a year. It employs 11 and generated just under $500,000 in sales last year, Nokian said. It becomes Nokian's fourth retreading plant, joining ones operated in Finland, Norway and Sweden by the firm's Vianor tire distribution subsidiary.
The retreading business unit will encompass the four retreading plants, Nokian's Noktop retread materials production and related purchasing operations, the firm said. The unit will have approximately 140 employees.
The creation of a separate profit center is expected to improve the company´s competitiveness in the Nordic countries, where the retreading industry is undergoing a steady concentration process into fewer and larger plants, the company said. The recruitment of a profit center manager is under way.
The Eurobandag acquisition will strengthen the company´s position in the growing Russian marketplace, Nokian said.