The Finnish Nokian Renkaat company known for its Nokian tires and her Russian associate, Amtel Holdings B.V. company, are soon to create a joint entity to produce and sell tires in the CIS. The two partners signed an agreement to this effect last Friday. According to the Finnish Turun Sanomat newspaper, the finalisation of all the technical and financial matters, will take 180 days.
The joint company will be named Amtel-Nokia Tires, its products produced at Amtel's plants in the cities of Kirov and Voronezh, Russia, and Rosava, Ukraine. Considerable investments will be needed in order to increase the output of the plants and to enhance its quality. According to the signed agreement, Nokian Renkaat will contribute about USD 10 million.
Amtel and Nokian Renkaat also intend to create, in Russia, a brand new plant to output high quality Nokian tires. This is necessary in order to fully use the capacity of the partners' sales outlet. Nokian Renkaat, the owner of a controlling portion of the new plant's stock, will become its operator, while the sales company will be owned by the partners on par.
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