Nokian JV to build $270 mln Kazakh tyre plant

ALMATY, April 16 (Reuters) - A joint venture between Finnish tyre maker Nokian (NRE1V.HE: Quote, Profile, Research, Stock Buzz) and Kazakh company Ordabasy will build a tyre plant in the Central Asian state by 2009, an Ordabasy executive told Reuters late on Tuesday.

"Investment will total 170 million euros ($269 million), including 40 million euros in equity capital of the Ordabasy-Nokian Tyres joint venture," said Adilkhan Umerbayev, the manager in charge of joint venture projects at Ordabasy.

Nokian has a 10 percent stake in the venture and Ordabasy owns the rest, he said in an emailed response to questions.

"We are now in the process of acquiring know-how and technical documentation from Nokian Tyres," Umerbayev said.

"We plan to launch the first production line with capacity of 1 million tyres (a year) in summer or autumn next year."

He said the state-owned Investment Fund of Kazakhstan was also considering an equity investment in the joint venture.

The plant will reach its full capacity of 4 million tyres a year within four years of its launch.

Umerbayev said the venture would produce tyres under the Nokian and Nordman brands, as well as a specially designed domestic brand, Astana.

"At least 5 percent of the plant's output will be exported, some of it to EU countries, and the rest will be sold domestically," he said. (Reporting by Mariya Gordeyeva, writing by Olzhas Auyezov, editing by Elizabeth Fullerton)