Nokia, Finland -- Nokian Tyres has signed an agreement with Kazakhstan-based open stock company Ordabasy Corp. JSC to build a greenfield passenger car tyre factory in Kazakhstan -- and will invest €160 million in the project.
The joint venture, which Nokian will initially own 10 percent of, with the option to increase to 50 percent, will operate under the name Ordabasy - Nokian Tyres JSC.
â€œThe joint venture company enables Nokian Tyres to establish a stronger position in the rapidly growing Kazakhstanian, CIS- and eastern European markets, to raise the manufacturing volumes and to strengthen the Nokian brand,â€ said Kim Gran, president and CEO of Nokian, in a 19 Oct statement.
The factory will be built in Kazakhstan's capital, Astana and will become operational during 2009, said Nokian in the statement. The company said that the target is to reach full capacity of 4 million car tyres by the year 2012 - 2013.
Nokian and Nordman -branded products for Nokian will be produced at the facility as well as a new product that will be developed as a result of the joint venture.
For the first five years 35-65 percent of the capacity of the plant will be reserved for Nokian tyres only, according to the statement. This will be reduced to 35 percent thereafter.
The tyres will be sold in Kazakhstan, central-Asia, Russia and eastern Europe.
This is an external link and should open in a new window. ERJ is not responsible for the content of external sites.
Press release from Nokian