no more nokian

[BF = DeJean]

Nokian Sells Off Tire Division

DECEMBER 06, 2004 -- LIESKA, Finland (BRAIN)--Nokian has agreed to sell its tire division and factory in Lieska to Finnish rubber company Suomen Rengastehdas Oy for EUR 3.6 million ($4.8 million).

The new owner took over production of bicycle tires and heavy-duty inner tubes Dec. 1, continuing to employ the factory"s current 59 workers under the terms of the sales contract.

Suomen Rengastehdas Oy is a subsidiary of Suomen Kumitehdas Oy, which has been in the rubber business since it began producing galoshes in 1898. It currently manufactures bicycle tires, rubber boots, footwear and other rubber products. It also reprocesses rubber.

In 2003, Nokian"s bicycle division generated net sales of EUR 5.1 million ($6.8 million) and recorded an operating profit of EUR 0.5 million ($0.67 million). The Lieksa plant manufactured 784,000 bicycle tires as well as inner tubes for heavy tires in 2003.