Russian Tyre Giant to Increase Output

The Russian Tatneft consortium, whose petrochemical division includes the companies Nizhnekamskshina, Tatneft Neftekhimsnab and Kama Trading House (formerly known as Kamskhina) has told the regional government in Tatarstan that it anticipates the three tyremakers’ combined output will increase to 21 million tyres. This increased production will bring about a small rise in Tatneft’s Russian market share, from 22 to 23 per cent.

Nizhnekamskshina will reportedly also invest 3 billion roubles (£58 million) in the modernisation of its manufacturing facilities by 2009. This upgrade will see total tyre production at the facility in question rise from its current 5 million units per annum to 8 or 9 million, with radial production increasing to 3 million units. In 2006 the company produced 12.206 million tyres, with this figure expected to slightly rise to 12.235 million in 2007.

According to Russia’s AK&M Information Agency tyre production in Russia has lagged behind market demands since 2004, and the recorded number of tyres sold in 2006 – 44 million – is approximately twice the number sold in 2000. About 90 per cent of total tyre production in Russia is conducted by Russian’s “big three” – Sibur-Russian, Tatneft and Amtel.