Cordiant Brand Launched in Cyprus

Following the first indications that the company would launch a new brand, the Sibur Corporation has now officially launched the new “Cordiant” line. The launch took place at a media event on the Mediterranean island of Cyprus, where journalists had the opportunity to get some first impressions of what is supposed to be Sibur’s new flagship brand. Sibur expects Cordiant to lay the foundation stone for the future success of the new tyre holding company which is due to be founded by the end of this year. Sibur also plans to use its modified brand strategy to focus more closely on the European markets, with the first successful step having already been taken in Eastern Europe.

Since the beginning of this year it has been obvious that Sibur is making a concerted effort to up-date its product portfolio as well as production capabilities in order to make them more compatible with modern markets. Funnily enough, this has even led to some scolding from the Russian media, as was reported in an earlier issue of this magazine (T&A 7/2005). However, the chemical giant Sibur has stuck to its path and brought its new tyre brand onto the markets. The concept of replacing old no name and non-branded tyre products with branded products will usher in a time of real product awareness, the company’s management reports. Market experts agree that these tyres are more likely to be successful in the Russian tyre market in the long run.

The introduction of Cordiant, explains corporate communications manager Sergey Ilinsky, is an expression of “the renovation of [our] passenger car tyre line-up”. Apart from the Cordiant brand, which is expected to settle in the B segment of the Russian tyre market, there will also be an additional PC and light truck tyre brand called “Tunga”. This will be Sibur’s C segment tyre brand. By the end of this year there will even be a third new tyre brand launched by the Russian manufacturer under the name of “TyRex”. With this collection of new brand identities Sibur is aiming to claim a larger share of the truck, agricultural as well as on the industrial tyre markets. “These are the tyres of a new generation and the highest quality,” Mr Ilinsky continues.

Currently the Cordiant brand is manufactured in Sibur’s tyre factory in Yaroslavl’ close to Moscow. Earlier this year company representatives acknowledged that its joint venture factory in Omsk (CJSC Matador-Omskshina) will also produce Cordiant tyres. Sibur operates tyre factories in the Russian cities of Omsk, Ekaterinburg, Yaroslavl’ and Volzhki.

Currently, the company’s Yaroslavl’ tyre factory has been expanded and updated technologically by virtue of an investment programme worth some 31 million US dollars. It is not only the product portfolio that has changed, PC tyre capacities will also be increased from current levels of 1.2 million units per year (2004) to 2.16 million units in 2007, the Moscow based distribution company Sibur-Russian Tyres says. This correlates to an 80 per cent increase in capacity.

Sibur is absolutely convinced it will use the additional capacity to its fullest extent. In addition to replacement sales, the new Cordiant band, which will at first be available in the “Standard RG1” (on-road summer use pattern called) pattern, Sibur has also found its way into car production plants. The Avtovaz group, the producer of the simultaneously famous and infamous Lada, will use Cordiant tyres as original equipment for its Lada Kalina and Lada 110 models. Until recently every second newly registered car in Russia was a Lada.

This means, as far replacement sales are concerned there is huge potential for Sibur’s latest product, particularly now it is an OE name. However, the specific tyre size also plays an important part. 47 per cent of all passenger car tyres that were produced in Russia in 2003 were 175/70 R 13 inch tyres. That’s why the manufacturer will start by producing this particularly popular tyre size. The company notes that other dimensions will follow later. From 2007 onwards for example, 14 inch Standard RG1 radial tyres will be offered (175/65, 185/60, 185/65) under the Cordiant brand, Sergey Ilinsky told Tyres & Accessories. In the future other tread patterns will be offered with different and more diversified dimensions, too: Cordiant Polar (a winter tyre that’s already in production), Cordiant Comfort (summer), Cordiant Sport W1 (summer), Cordiant SnowMaster (winter), Cordiant 4×4 All Terrain, Cordiant AT1 (both all season tyres).

So, Sibur has some far-reaching plans for increasing its product portfolio. The Russian tyre manufacturer hopes for a successful launch on the domestic as well as on export markets such as the CIS states and Eastern Europe where Cordiant will be distributed. Whether or not the new tyre brand will be offered to wholesalers or dealers in Western Europe hasn’t yet been officially decided.

During the tyre launch event in Cyprus the new Cordiant Standard RG1 was said to be the “best among all Russian-made tyres of the same size that won’t yield to foreign analogues from the B-class in quality and characteristics”. This was also confirmed by “independent tests made by experts form Avtovaz” who compared the new tyre with a reference tyre from Germany’s biggest manufacturer, says Sibur. During the Cyprus launch, the Cordiant Standard RG1 was proved to be capable of handling critical wet and dry road conditions: “During the test,” Sibur continues, “the high quality characteristics of the Cordiant tyres were never in doubt.”