NOKIA, Finland (Oct. 1)--Nokian Tyres P.L.C. is selling its bicycle tyre business to a new business unit of a Finnish rubber products company active in bicycle tyres and rubber footwear for about $4 million.
The buyer, Suomen Rengastehdas Oy, will take over Nokian's bicycle tyre business in Lieksa, Finland, which generated nearly $6 million in sales last year. The new owner also will take over production of heavy inner tubes on a contract manufacturing basis for Nokian Tyres.
Suomen Rengastehdas, a new subsidiary of Suomen Kumitehdas Oy--also known as Teknikum Oy--agreed to employ all 59 workers in Lieksa under terms of the existing contract. The deal is effective Dec. 1.
The principals of Suomen Rengastehdas formerly were involved in Nokian Footwear Ltd., a business previously allied with Nokian Tyres.
The Lieksa plant made 784,000 bicycle tires in 2003. The unit was in the black last year, reporting an operating profit/earnings ratio of 9.8 percent.