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Report: Titan Poised to Enter Russian Tire Market

June 07, 2013
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The Moscow Times reported that Titan International may enter the Russian tire market via purchase of a stake in Voltair Prom, a Kordiant-owned tire plant in Volgograd.

According to the report, the Voltair Prom plant currently produces agricultural and industrial tires, and was valued at around $150 million.

JPMorgan and the Russian Direct Investment Fund, a source told the newspaper, could be involved as partners in a deal.

RDIF director Konstantin Ryzhkov told the newspaper that “his organization knows a number of ‘first-class partners’ with whom they could invest in the tire production market.”

The report said a deal could be finalized by the end of June. Neither Titan nor other parties have offered any comment on the matter.

In April, when Titan issued its first quarter results, CEO and chairman Morry Taylor made specific mention about the Russian market. In looking at where Titan’s best growth opportunities lie, Taylor stated: “Russia and Ukraine will be a high growth opportunity for Titan over the next 10 years.
“I am very upbeat on South America and Russia,” Taylor said. “Even if crop prices would drop 25%, areas like South America and Russia have a tremendous growth in agriculture equipment and mechanization. India and China, I believe, will not grow at such a rapid pace.”