Amtel-Vredestein Sells Chemical Fibre Plant

Amtel-Vredestein N.V., Europe’s fourth largest producer of tyres, has announced it has sold its Amtel-Kuzbass chemical fibre plant in Kemerovo. The company had disclosed its intention to sell the loss producing Russian plant, its last remaining non-core asset, during 2006.
While the implications of this sale are still being analysed, it is thought that it will contribute a loss to company’s 2006 full year results, which Amtel-Vredestein believe will be offset by their acquisition of the Moscow Tyre Plant.

Amtel-Vredestein will reportedly also restate its previously stated figures by January 19 when it completes its review of 2006 half-year results. The company reported its unaudited half year results, indicating a net loss of $15 million (£7.67 million) during the period, on August 14 2006. Following this current review the net loss may be reduced to $13 million.