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Nokian and Matador To Commence Contract Manufacturing

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Nokian Tyres plc and Matador AS are signing a contract manufacturing agreement. This transaction will mean that Matador will produce Nokian branded speed categories S, T, and H car summer tyres at its factory in Slovakia. The tyres will be sold in Eastern European markets. The production target for 2003 is 100 thousand Nokian tyres with initial sales taking place during the first quarter of the year. Volume manufacture will increase to 300 thousand tyres by the end of 2005. Through contract manufacturing Nokian will continue to ensure its growth potential in Eastern Europe. Production capacity at the company’s factory in Finland will be freed to produce ultra high performance tyres. The agreement will be valid until the end of 2005 and after that on a one-year basis.

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Motokov (UK) Ltd: The Matador People

Motokov UK Ltd is the long-standing importer and distributor of Matador tyres from Slovakia, the UK subsidiary of a Czech company. Its tyre division is a high efficiency, low cost hands-on operation offering a dedicated service for the Matador brand. The King’s Lynn-based operation is perhaps one of the most straightforward tyre import businesses in the country. The tyre division at Motokov is handled by Paul Mills and Steve Eke. Paul has been with Motokov for seven years, Steve for 17. Their sole raison d’etre is to ensure the availability and supply of Matador tyres. The company which has been dealing in tyres for over 30 years, has been the importer of Matador tyres for the past ten years and has recently taken on the agency for Triangle crossply truck tyres and earthmover tyres from China.

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Is Continental Chasing Matador?

Since January 1999 Continental has held a 75% stake in Matador’s truck tyre production. Now rumours suggest that Continental is seeking the same deal for passenger car tyre production. There is no confirmation of this from Continental. Up until now Matador management has been keen to remain independent as far as passenger car tyre production is concerned. Matador see opportunities to develop passenger car market share throughout Europe as well as maintaining its successful position in Russia.

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