Nokian Tyres, Amtel Holding to create Russian tire venture

MOSCOW (July 9)—Nokian Tyres P.L.C. and Russia's Amtel Holding plan 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 $100 million through 2007 to upgrade facilities at Amtel's Voronezh 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,àwe expect to create a more efficient organization committed to the needs of our customers in (Commonwealth of Independent States) countries," said Nokian Tyres President Kim Gran. Amtel Holding claims a market share of about 30 percent in the CIS. It also has holdings in the carbon black and textile reinforcements industries.