Nokia, Finland – Nokian Tyres plc is acquiring Finnish heavy equipment wheel company Levypyoerea Oy to complement its Heavy Tyres business.
Terms of the acquisition were not disclosed.
"With the acquisition, Nokian Heavy Tyres can offer innovative new solutions to its existing customers and increase wheel volume as well as further improve its service level," Nokian heavy tires managing director Manu Salmi said.
Levypyoerea, according to Salmi, is already “a trusted partner” and the acquisition provides additional growth opportunities for the company’s key OE and aftermarket customers.
Nastola, Finland-based Levypyoerea supplies several heavy equipment vehicle manufacturers and aftermarket customers in forestry, agriculture and earthmoving applications.
With two distinct product lines, wheels and wheel structures, the company has annual sales of around $20 million (€18 million).
Founded 64 years ago, Levypyoerea employs 100 people at its facilities in Nastola, 100 miles southeast of Nokian's headquarters in Nokia. It was part of Weckman Steel Oy.
Nokian Tyres Heavy Tyres business unit is in the midst of an $82 million, 3-year expansion of commercial tire production at its headquarters plant in Nokia.
The move is designed to boost annual capacity for heavy-duty tires by 50% to 32,000 metric tonnes by 2021.
The heavy tires business — which includes truck, farm and OTR tires — accounted for 11.8% of Nokian's sales of $1.81 billion last year, up from 11% in 2017.