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October 06, 2000 02:00 AM

Nokian, Michelin sign off-take branding agreement

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    NOKIA, Finland (Oct. 6)—Nokian Tyres P.L.C. and Groupe Michelin have signed off-take agreements calling for Michelin to make Nokian-branded heavy tires at Michelin´s subsidiary plant in Poland over the next three years. Trial manufacture of agricultural and industrial tires has started at Michelin´s Stomil-Olsztyn S.A. plant in Olsztyn, Poland, and sales are targeted to begin later in the year, Nokian said. Michelin will begin production of Nokian-branded truck tires at the start of next year, the companies said. Truck tires represented about 15 percent of Nokian´s heavy tires sales of in 1999. The off-take co-operation with Michelin will enable Nokian to increase its heavy tire sales, which have represented just 3-4 percent of the group´s net sales during the last few years, according to Kim Gran, Nokian´s president and chief executive officer.

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