Amtel-Vredestein Expands its Retail Network beyond Moscow

Amtel-Vredestein NV has acquired six multi-brand tyre sales and service centres from the Vils Group in the Perm region of Russia. The company currently operates outlets in and around Moscow. Perm is located approximately 1300 kilometres east of Moscow along the western slope of the Ural Mountains.

“We are executing a bold strategy to rapidly enlarge our retail footprint across Russia,” said Amtel-Vredestein’s (AV) CEO, Alexey Gurin. “We believe that a substantial proprietary network will allow us to grow margins in our core tire business and improve the overall customer experience.”

To date, AV has acquired 41 retail outlets. Over the next two years it plans to grow its network to 200 outlets across Russia. AV’s tyre business was launched in 1997. By 2004, AV had become one of the three largest tyre manufacturers in the CIS, with aggregate sales of 21.8 million tyres and a 19.6 per cent share (on a pro forma basis) of the Russian tyre market in terms of unit sales. In April 2005, AV acquired Vredestein Banden BV.

The most recent development forms part of AV’s strategy of building a proprietary retail distribution network through the acquisition and expansion of multi-brand tyre sales and service centres throughout Russia.