Amtel Says it Will Sell or Close Soviet-era Plant - Tire Review Magazine

Amtel Says it Will Sell or Close Soviet-era Plant

(Akron/Tire Review) Russian tiremaker Amtel-Vredestein NV said it plans to “sell or otherwise dispose of” its tire plant in Krasnoyarsk, Russia.

The company recently sold its Amtel Carbon operations, based in Volgograd, to Omsk Carbon Black for a reported $21 million.

Amtel-Vredestein said the Krasnoyarsk plant is a Soviet-era facility that primarily produces truck, agricultural and “C” segment tires that do not fit with the company’s strategy of focusing on the production and marketing of high-margin premium and mid-range passenger tires.

Company officials said that its current demand for truck, agricultural and other specialized tires can be met through outsourced production.

The acquisition of Vredestein Banden in 2005 gave Amtel the ability to integrate advanced tire technology. Amtel-Vredestein has spent some $110 million to modernize and expand its other tire plants in Kirov and Voronezh. Company officials said modernization of the aged Krasnoyarsk facility would be far too costly. The disposal of the Krasnoyarsk facility is a “natural progression for the company to move toward ultramodern production methods and shed its Soviet-era legacy,” the company said.

Amtel-Vredestein CEO Alexei Gurin commented: "The disposal of these non-core, unprofitable or loss-producing businesses is consistent with our strategy to expand our position in the premium and value-for-money segments of the passenger tire market and to develop our retail distribution channels. By settling the disposition of these facilities in 2005, the company sets the stage for higher profits in 2006 and beyond.”

You May Also Like

The good news about the industry’s technician shortage

For the first time in 10 years, collective completions of postsecondary automotive, collision, diesel and aviation programs have increased.

TR-Continental-techshortage

Alright everyone – it’s time to rip the band-aid off and tell you some bad news about the technician shortage. Over the next five years, the automotive repair and service industry is expected to face a significant shortage of technicians, with a projected deficit too large to meet the demand for vehicle maintenance and repairs of everyday drivers.

TBC launches new Power King Navitrac commercial truck tires

Designed for a wide range of applications, the company said all Navitrac tires are backed by a five-year, two-retread warranty.

TBC-Brands-Navitrac-Banner
VIP Tires & Service, Joe’s Tire Shop launch customer appreciation promotions

Promotions will be running through Aug. 21.

VIP-Tire-Waterbury-Customer-Appreciation-Event
ASE to provide a testing and certification program for xEV high-voltage safety

Once the test is passed, the test-taker receives an electronic credential and a certificate.

BKT becomes member of the Global Platform for Sustainable Natural Rubber’

GPSNR brings together natural rubber producers, traders, tire manufacturers and other industry partners to promote sustainable solutions.

OTR-tire-feature-– BKT-Earthmax-Sand-Pic-1400
Other Posts
Goodyear launches Cooper Discoverer Stronghold AT tire

Available in 28 sizes with a 16- to 20-in. rim diameter, the tire is compatible with a wide range of pick-up trucks and off-road vehicles.

Goodyear-Cooper_StrongholdAT_Chevy
PRT launches 28 new complete struts in North America

These products expand coverage to nearly 6 million vehicles.

PRT-28-new-struts-1400
Doran releases 360OTR tire monitoring system

The system can be integrated with telematics devices to provide off-vehicle communications of tire pressure and temperature data.

Doran-4-tire-monitoring-system
Following AC system service, how much oil is needed?

Learn how to determine the correct amount of oil to add when replacing the compressor in an AC system.

Maintenance-IQ-feature