Addis Tyre and Matador, a Slovakia Private Tyre Company, signed on Tuesday a joint venture agreement with a local enterprise that would last until 2010.

The 22.8 million dollar joint venture, out of which 13.9 million dollar is covered by Matador, aims at producing tyres for both local market and export.

Speaking at the signing ceremony, Beyene Gebremaskal, General Director of Public Enterprise with Addis Tyre, said that the partnership would result in the replacement of outdate technology of the factory, the establishment of a strong and dynamic management system and the gain of additional capital and knowledge in order to make the factory competitive on the world market.

Girma Biru, Minister of Trade and Industry, said on the occasion that the challenges in the tyre industry needed partners that could inject financial resources as well as value added technology.

No employee would be laid off as a result of the partnership, it was learnt.