Sibur Plans to Exit Tire Business - Tire Review Magazine

Sibur Plans to Exit Tire Business

Sibur is planning to exit the tire business “eventually,” in a move that would mark the end of the firm’s tire subsidiary, Sibur-Russian Tyres, in its current form. Speaking to journalists at a recent press conference, Dmitry Konov, chair of the executive board and president of Sibur, said he expects a significant degree of consolidation amongst the Russian tiremakers in the coming years. The company’s eventual aim is to dispose of the tire production assets “at a profit,” he explained.

For some time, Sibur has been working on acquiring the assets of the bankrupt Amtel NV, having acquired Amtel’s debts over the summer. The situation is complicated, but according to a Sibur spokesman, “Sibur now has full operational control of all the assets of Amtel.”

Sibur said the three domestic tiremakers need to broaden the range of tires they make, adding new sizes and dimensions in consumer tires and improving the technology used in truck tires. In consumer tires, it is all about raising the profile of the existing brands and removing the negative connotations of the made in Russia label. According to a report in the European Rubber Journal (ERJ) this does not mean Sibur Russian Tyres expects to compete with Michelin and Nokian at the top of the brand tree, but rather to offer “fierce competition in the mid-range.”

This means investing in the Voronezh 2 tire plant, which has been standing idle since Amtel’s bankruptcy. ERJ added that the mixing room “still needs to be installed to make silica compounds for tires.” A Sibur spokesman reportedly said it was possible competitor Nizhnekamskshina might participate in that investment, but sidestepped details of how the two companies could be working together as a joint venture.

Russia’s Vedomosti newspaper reported that Sibur Holding and Nizhnekamskshina intended to merge their tire production back in August. At the time, news that the two companies were in talks was confirmed by a Tatneft official. (Tyres & Accessories)

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