Continental (76%) and Matador (24%) have had a joint venture for the production of truck tires in Slovakia since 1998.
"With this move, we are strengthening our ties to our highly successful joint venture partner," said Continental executive board chairman Manfed Wennemer. “At the same time, we are expanding our operational base in Eastern Europe markets as well as our production capacities for passenger and light truck tires in low-cost countries.”
Details of the acquisition deal were not released.
For 2006, Matador Group posted sales of almost $1 billion and had 4,770 employees.
“In combining forces and experience, we will improve our market positions in Central and Eastern Europe and get additional sales opportunities in Russia, Ukraine and the Stan States. Especially our position in Russia will be expanded, as we are not only improving our access to the market but getting a production facility in Omsk as well,” Wennemer said.
“With this strategic alliance, we will further improve the quality and volume of Matador tire production, open new markets and increase the value of the Matador brand,” said Stefan Rosina, Matador CEO. “We are, moreover, also strengthening our position in automotive – our second strategic business. After excellent experiences with our truck tire joint venture, we are sure that this partnership will be the best solution for the future of Matador and also for our employees.”
Wennemer said Conti plans to invest heavily in Matador, expanding its passenger tire production capacity by almost 2 million units per year and enhancing its sales and marketing efforts.
