Nokian Tyres Strengthens Retail Network
Nokian Tyres has strengthened its retail network by purchasing the Rengasmestarit-Kumi-Helenius Group which has 31 tyre retail outlets in Finland. The acquisition means that Nokian Tyres’ retail network covers the whole of Finland. The purchase price was 8.
3 million euros. In 1999, the company’s net sales amounted to approximately 34 million euros and it employed 240 people. After the acquisition, Nokian Tyres will have a total of 153 sales outlets in Finland, Sweden, Norway, Estonia and Latvia.
In 1999, net sales from retail stood at 100 million euros. The target for net sales from retail in 2000 is 200 million euros. After acquiring Rengasmestarit-Kumi-Helenius Group, Nokian Tyres’ share of specialised tyre retail business in Finland will increase to 30 p.
c. and the number of outlets will grow to 69. Unifying and developing the retail function and expanding the network, particularly in Sweden by a few minor company purchases are Nokian Tyres’ short term targets.
With a retail network of its own, the company intends to secure its position and the continuous growth of sales on the strategically important home market. However, two thirds of the company’s net sales will continue to come from outside Nokian’s own retail network..