NOKIA, Finland (March 15)—Nokian Tyres P.L.C. is pulling out of a sales and production joint venture with Russia's Amtel Holdings and instead will proceed with plans to set up its own distribution and sales network and build its own plant in Russia.
Nokian said it has started a process with the target to terminate the operations of its Russian joint venture company Amtel-Nokian Tyres, which had been established in January 2003 to sell Nordman-brand entry-level car tires and to make preparations for a joint venture tire factory. The firm did not explain why it was withdrawing from the venture.
The companies' joint venture plans came into question earlier this year after statements from Amtel executives cast doubt on their cooperation. Nokian subsequently announced plans in February for its own facility in Russia, a $67 million project for a passenger tire factory near St. Petersburg.
For now, Nokian said it has leased a warehouse in the Moscow region to strengthen its distribution and sales network for Nokian-brand tires.