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.
Nokian Tyres, Amtel Holding to create Russian tire venture
Letter
to the
Editor
Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].