PUCHOV, Slovak Republic (Nov. 16, 2007) — Matador will cease production of Nokian-brand tires at its factory in Puchov, following the acquisition by Continental A.G. of 51 percent of the equity in Matador A.S.'s rubber activities,.
Matador has been making Nokian-brand passenger tires for Finland's Nokian Tyres P.L.C. since 2004 under an off-take production agreement. At that time Nokian disclosed it was planning to spend about $3.5 million to help Matador buy equipment to make up to 1 million Nokian-branded tires each year, primarily for markets in Eastern Europe.
A Matador spokesman, speaking during a tour of the factory following the announcement of the Conti acquisition, confirmed that the off-take deal will cease under Continental's ownership, although he did not say how soon it would take effect.