October 19th, 2007
Nokian Tyres to participate in building a new factory in Kazakhstan
Nokian Tyres has signed an agreement on the 19 October 2007 with the Kazakhstanian multi-industrial company Ordabasy Corporation JSC in order to build a greenfield passenger car tyre factory in Kazakhstan.
The new factory will be a joint venture company called Ordabasy Nokian Tyres JSC. Nokian Tyres' share of the joint-venture company will be 10%. Nokian Tyres has an option to increase its ownership to a minimum of 50%.
According to the agreement Nokian Tyres will provide the joint-venture company with the know-how and expertise needed to build a tyre factory and to produce tyres. The factory will produce Nokian and Nordman branded products for Nokian Tyres and in addition a new product that shall be developed for the joint-venture company. The products will be sold in Kazakhstan, as well in Central-Asia, Russia and Eastern Europe.
The factory shall resemble the existing Nokian Tyres' factory in Vsevolozhsk, Russia. The factory will be built in the Capital of Kazakhstan, Astana and become operational during 2009 with the target to reach the full capacity of 4 million car tyres by the year 2012 - 2013. During the first five years 35-65% of the capacity shall be reserved for Nokian Tyres and a minimum of 35% thereafter.
- The 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, says Mr. Kim Gran, President and CEO of Nokian Tyres.
The total investment will be approximately EUR 160 million financed through equity of approximately EUR 40 million and external loans. Nokian Tyres has made a long-term technical and management aid agreement with Ordabasy Corporation.
About Ordabasy Corporation JSC
Ordabasy Corporation JSC is a Kazakhstan open joint stock company comprising of subsidiaries active in various fields of economy. The Parent Company was established in 2002 and is listed on the Kazakhstan Stock Exchange (KASE). Ordabasy Corporation carries out investments into various fields of economy and carries out new venture projects unprecedented in the market of Kazakhstan. The previous largest projects of Ordabasy Corporation are: Aktyubinsk Oil Equipment Plant JSC (AZNO), Incomtyre JSC, Asia Ceramic LLP, Transport-logistics Centre at Arys R/R Station, and Ordabasy-Agro Plant.
Mr. Kim Gran, President and CEO,
tel 358 10 401 7336
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