Amtel-Vredestein Reports Production Resumed at Kirov Facility

Amtel-Vredestein has responded to recent media speculation over a halt in production at its Amtel-Povolzhye facility, claiming that production resumed at the plant on February 15. The company reports that operations “continue as usual” at the facility, located in the Russian city of Kirov, following a “temporary suspension in the supply of raw materials that led to a disruption in production on 11 February.” This downtime, claims Amtel-Vredestein, was utilised to complete scheduled equipment maintenance and repairs.

The company claims that supply problems have been rectified through the signing of a contract with Sibur-Russian Tyres for the supply of raw materials and also through the use of a US$25 million Alfa-Bank credit line provided for the purpose of increasing the company’s working capital. “It is business as usual and there has been no impact on our ability to meet supply agreements and consumer demand in a timely manner,” commented Amtel-Vredestein CEO Petr Zolotarev.

The Amtel-Povolzhye factory, first opened in 1943, was acquired by Amtel-Vredestein in 1999 and integrated into the tyremaker’s group operations in 2003. Following a 40 million euro modernisation programme the production of Amtel tyres began at the site the following year. Amtel-Vredestein reports that the facility currently produces more than 20 types of Vredestein tyres and 50 varieties of Amtel tyres, and has an annual capacity in excess of 7.2 million tyres.