According to a company statement, the move follows customer demand.
“The growth of European consumers’ interest [in] Sibur-Russian Tyres’ production has lead to the decision of SRT’s top management to establish a subsidiary in Germany,” the company said.
The opening of a new office in Berlin is a part of company’s policy aimed at entering Western European markets. “The main functions of Sibur-Russian Tyres’ subsidiary in Germany comprise product promotion and sales. The establishment of German subsidiary will help to optimize the company’s sales and distribution structure in Western Europe.”
A top executive of Sibur-Russian Tyres noted: “Currently, [the] company is actively developing. The company’s production is orientated not only to the internal but also to external markets; more than 25% of company’s production goes for export. For the future, the company plans to enter new markets, while strengthening its positions on its traditional market areas. The goal is achievable as SRT will keep on the development of quality management systems and provides international standards in tyres production.”
At the moment, Sibur-Russian Tyres’ products are exported to the Commonwealth of Independent States, Middle Eastern countries, and Western and Central Europe. However, the company has plans to increase is export distribution and actively promotes its products to other foreign markets.
In May, T&A reported of Sibur intentions to join a premium level European or Japanese tyre producer as a minority partner, producing passenger car tyres in a Russian greenfield joint venture. In 2006, the company presented its product portfolio at the Reifen exhibition in Germany. This was followed in 2007 by stands at some of the most influential shows in Europe, namely: “Brityrex (England), Motortech (Spain) and SEMA (France).”
Sibur-Russian Tyres generates gross sales of $800 million a year. According to 2006 results, the company covers about 35% of the Russian tyre market. The has four tyre plants, and two others involved in industrial production.
