Titan to enter Russia?
Titan International could be planning to enter the Russian market, having bought a stake in Voltair Prom, the Kordiant-owned plant in based in Volgograd. According to the Moscow Times and Vedemosti newspapers, the factory, which produces agricultural and industrial tyres is valued at 5.1 billion rubles (US$160 million). One Equity Partners Fund, a JPMorgan affiliate, and the Russian Direct Investment Fund, could co-invest with Titan, a source close to the negotiations is quoted as saying.
According the newspaper reports, the deal could be finalized by the end of June but the cost of any potential deal is not yet known. Titan has yet to comment, but Kordiant representatives are reportedly weighing up their options.
Earlier, the head of Titan International Maurice Taylor said that the company is interested in the Russian market, where one of the company’s biggest clients, John Deere, is already represented.
In 2012 CEO and co-owner of Kordiant Dmitry Sokov said that by 2018 the company will have invested $550 million for the expansion of truck and car tire production. The total output should increase by about 40 percent to 12 million units yearly, but this objective can be achieved earlier if Kordiant if a deal can be struck soon, he added.
Related news:
Comments