BUCHAREST, Romania--Finland's Nokian Tyres P.L.C. has selected Romanian tire producer S.C. Tofan Grup S.A. to make a range of its agricultural and industrial tires in Romania.
The long-term agreement covers products that represent between $6 million and $8 million in annual sales, Nokian said. The deal allows the Finnish company to focus its resources on higher-value premium products in its forestry, mining and related segments.
Nokian also paid $8 million for Norway's third-largest tire distributor, Bergs Gummi-Industri A.S., a company with 18 retail stores, two truck tire retreading plants and annual sales of $18 million.
The acquisition doubles Nokian's retail presence in Norway and increases annual sales there to nearly $43 million.
Tofan Grup is a privately owned enterprise that controls Romania's three largest tire producers--Danubiana S.A. in Bucharest; Victoria S.A. in Floresti; and Silvania S.A. in Zalau.
Tofan also makes farm/implement tires for Titan International Inc.'s European subsidiaries. Tofan will produce Nokian-brand tires at two of its three plants and utilize Nokian molds and technical specifications, the firms said.