Nokian bicycle tyres and tubes are extra thick. Some of the tyres are peppered with metal studs to aid cycling on ice and in hard-packed snow.
The agreement concerning the sale of Nokian's bicycle tyre business was signed and confirmed on 1st December. The sale of the factory premises in the town of Lieksa and the conditions related to the deal were also accepted.
The total sale price for the business operations and the real estate was EUR3.6m.
Nokian Tyres plc sold the division to Suomen Rengastehdas Oy, a subsidiary of Suomen Kumitehdas Oy. The two owners of this business are previously members of Nokian Jalkineet Oys (Nokian Footwear) management.
Suomen will provide contract manufacturing services to Nokian Tyres.
All 59 of the bicycle division workers have transferred to Suomen.
In 2003, Nokian Bicycle tyres generated net sales of EUR5.1m, recorded an operating profit of EUR0.5m.
The Lieksa plant manufactured 784 000 bicycle tyres in 2003.