Chinese Double Star Tire company is under negotiation with Finland' s Nokian Tyres company to buy out the latter or part business of the latter, an insider told journalists from Tireworld.com.cn.
Known for its winter tyres, Nokian Tyres operates the only permanent winter tyre testing facility in the world. However, the company has no factory in China and only exports Nokian Tyres to China from European factories.
Before 2015, Nokian Tyres focused on Russian market and sell winter tyres there mostly. Statistics showed that sales in Russian market accounted for Nokian's 1/3 of annual revenue in 2014. But, with Ukraine crisis and weaken Russian Ruble since the end of 2014, Nokian's tyre business there was badly hurt, which forced the company to develop other markets.
In November 2014, Air Lehtoranta, Nokian's CEO, said Nokian is planning to improve Chinese market, considering that China may be the second largest winter tyre market after Europe.
Nokian Tyres was the first tyre manufacturer in the world to fully eliminate high-aromatic oils from its production process. Used as plasticising agents in tread production and to facilitate the compounding of rubber, they contain polycyclic aromatic hydrocarbons (PAHs), a carcinogen, and have been replaced by low-aromatic oils.
