Nizhnekamskshina Plans Radial SUV Tyre Production

Russia’s largest tyre maker, Nizhnekamskshina, has announced that it will increase capital expenditure by 14.9 per cent to 880 million ($17.6 million) in 2006. The company will invest in plant upgrades and in new capacity, including the production of radial tyres for SUVs and light trucks.

CentreInvest analysts quoted company CEO, Radik Ilyasov, as saying sales will increase sales by 24.8 per cent to 18 billion rubles (£360 million) in 2006 and increase output volume by 1.2 per cent to 12 million tyres. “While we view the news positively, we believe it will not affect Nizhnekamskshina’s margins, whose pricing policy has long been determined by controlling shareholder, Tatneft,” the analysts commented.