Titan Confirms Russia Interest, Taylor Looks at 2013 Thus Far

On June 8, Titan International confirmed reports that it is in talks regarding a potential investment in Russia.

Titan said in a statement that it has "in cooperation with One Equity Partners and Russian Direct Investment Fund entered into negotiations with Cordiant about a potential investment in Russia. Titan hopes to successfully complete these discussions in the near future."

Titan said that in such a deal it would "be the managing partner and is looking forward to working with RDIF and OEP."

The Russian Direct Investment Fund “brings the expertise to how business is done in Russia and the relationships to deliver value-creating transactions, just as One Equity Partners brings its knowledge of the world of finance.”

Titan also noted that some of its key customers – notably John Deere, CNH, Agco and Caterpillar – “are all increasing their presence in Russia and CIS, and Titan will be there to service them as well as their end users of equipment with locally produced top quality tires.

“It is Titan’s belief that the future growth of farming and mining will be in Russia and CIS countries,” the company continued.

Aside from company statements regarding its Russia interest, CEO and chairman Morry Taylor offered his comments on the current market situation through the first five months of 2013:

“I have stated over and over that all the talk of tire shortages has been false. Well, in the past couple months, millions of dollars in tires have been dropped into the aftermarket from the OEMs in the farm and construction industries and also the mining companies, who had built up inventories greater than a year and are now releasing these tires. This will affect every tire manufacturer worldwide. The entire volume of tires will have an aftermarket effect for a few months before things get back to normal.

“We feel that this is a bump in the road as we have experienced this in the past. I think of all the overtime and weekend work to produce tires that go into building inventory and then when they see the storage cost, they discount them into the aftermarket. The selling price of all our products is going down because our material cost has been dropping. The guidelines that I gave in December of 2012 will be adjusted downward, but I need to find out approximately how much the mining companies will be lowering their inventories.

“Titan sold 44% of Titan Australia to our Planet Group partners so we could combine the companies to get the best results and grow the business.

“Bill Campbell took over the Bryan tire operation in April and has been getting that facility back on track, and he feels the facility will continue to improve through the year.

“We are still moving ahead on the acquisition trail and expect a number of these transactions to close before the end of this year. Overall, I still see this year as a record year and one that will set the course for Titan’s growth.”

Ascot Supply Corporation, based in Newnan, Georgia, has selected Mark Paquette for the newly created position of vice president. In this position, Ascot Supply said Paquette will oversee the growth of the company's products, corporate profitability, manage marketing and advertising and assume many other responsibilities.

He will work under the direction of current President David Kessler and officially begin his new role on June 3. Paquette joined the tire and automotive industry in the early 1980s at his father's tire shop, and his contributions to Mohawk Rubber Sales were instrumental in the company's growth and eventual sale to Myers Tire Supply in 2021, according to Ascot Supply. Paquette eventually was given a promotion to the role of director of operations at Myers Tire Supply.