Nokian, Amtel to step up joint activity in Russia, build new plant

NOKIA, Finland (Dec. 20)—Nokian Tyres P.L.C. and Russia's Amtel Holdings B.V. have expanded their fledgling relationship in the former Soviet Union, agreeing to set up a production and sales joint venture for Amtel- and Nordman-brand tires and to build a joint venture plant for making Nokian-brand tires. The venture, Amtel-Nokian Tyres, will make Nordman and Amtel brand tires at Amtel-controlled factories in Kirov and Voronezh, Russia, and Rosava, Ukraine, Nokian said. The venture should produce 900,000 passenger and light truck tires next year and quadruple that in 2004 to 3.6 million. The partners will invest about $25 million in the next two years to upgrade the facilities. The second phase, for a new factory, will be Nokian majority-owned. It would have annual capacity of 1.2 million units within three years of final approval of the project.