Amtel-Vredestein’s Voronezh Plant in Compliance

Amtel-Vredestein has reported that, contrary to the information given out by Russia’s Interfax news agency that the net assets of OJSC Tyre Complex Amtel-Chernozemye are less than its charter capital, OJSC Amtel-Vredestein confirms that its Voronezh manufacturing facility is in complete compliance with current Russian tax legislation, including the “Law about joint-stock companies”. As of 1 October 2007, and in accordance with reports submitted to the federal tax service department in the Voronezh region, OJSC Tyre Complex Amtel-Chernozemye’s net assets are 366 million roubles (£7.16 million) and its charter capital is 355 million roubles (£6.94 million).

OJSC Amtel-Vredestein is one of the largest investors in the Voronezh region and reports that it has successfully cooperated with its administration for many years. Loss reporting during a long-term investment period is a common Western business-practice. The “Long-term result of our investments are high-quality export-oriented products, based on high-technology, ecologically-friendly Russian facilities. In addition to the obvious advantages to the manufacturer in the form of higher competitiveness and profitability, our investments will also benefit the local economy by creating a higher tax base, additional employment and improvements to the social and economic level of the region,” said Petr Zolotarev, OJSC Amtel-Vredestein general director and Amtel-Vredestein N.V. CEO.

Amtel-Vredestein is finalising an investment program that it has been conducting for the past few years. The company is also in the process of improving the operational and cost effectiveness of all of its business units.