Nokian and Matador Expand Cooperation

Nokian and Matador are to expand their co-operation, the companies report. The two tyre manufacturers signed an agreement on 5 November, which will see Nokian increase the number of passenger car tyres that are produced at Matador’s plant in Slovakia. In conjunction with this, Nokian Tyres and Matador also signed an agreement on machinery acquisition. The Finnish company will purchase new equipment at a cost of around 3 million euros in order to secure the production capacity at Matador’s tyre plant.

The objective is to increase the present production of 300,000 tyres to 500,000 tyres in 2005 and to gradually increase the volume to 1 million tyres.

According to Nokian, the manufactured tyres will mainly be Nokian-branded passenger car tyres intended primarily for the Central European markets. The contract manufacturing agreement will be valid until the end of 2009 and after that renewed for one year at a time. The new agreement will replace the earlier agreement signed in January 2003.