NOKIAN TYRES SHOWS INTEREST IN YEREVAN PLANT

Interfax News Agency
March 25 2008
Russia

Finish car tyre manufacturer Nokian Tyres is interested in the Armenian
tyre plant Dogagorts-1 (formerly known as Yerevan Tyre Plant).

The company is interested in buying shares in the plant and is ready
to raise money for its upgrade, Minna Tihinen, the export manager at
Nokian, told the press.

Tihinen said she had not yet been able to discuss these plans with
the tyre plant or with the Armenian Trade and Economic Development
Ministry.

Economic Development Minister Nerses Yeritsyan refused to make any
comments about the Nokian Tyres plans because the owner of Dogagorts-1
– U.S. company TS-Investment Corp., is involved in a court dispute
with the ministry.

TS-Investment bought 75% of Yerevan Tyre Plant in 2002 for $1.287
million, undertaking to invest $12 to $13 million over three years
after the privatization. In mid-2007, the company filed a lawsuit
in London against the government of Armenia through the Trade
and Economic Development Ministry in order to be released from its
investment commitments. The company accuses the ministry of impeding
the investment program’s implementation.