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Amtel-Kirov Plant Enters Bankruptcy Protection

Following the official bankruptcy of Amtel-Vredestein NV in April, and the subsequent sale of Vredestein Banden and its subsidiaries to Apollo Tyres, the Russian holding company’s Kirov manufacturing operation entered voluntary bankruptcy on 22 June. OJSC Amtel-Vredestein entered bankruptcy on 3 June 2009 with subsidiary OJSC Tyre Complex AmtelChernozemje doing the same on 20 May 2009. According a report in the local Kommersant newspaper, the decision was reportedly made after accounts payable mounted up to 982 million rubles (£20 million) in the first quarter 2009 compared with a net asset value of about 840 million rubles (£16.337 million).

Kommersant estimates that the total debt load of Amtel-Vredestein’s Russian units adds up to more than US$450 million. Negotiations with creditors, the largest of which is said to be Sberbank, which is apparently owed US$100 million, are currently underway. However, the newspapers are also speculating about some more ‘creative’ kinds of debt restructuring. Arguably, the most interesting of these sees Kommersant name Pirelli as a foreign investor willing to expand its interests in Russia beyond the tyre production joint venture it signed with Russian Technologies in November 2008. Apparently certain government officials discussed the idea with the leadership of Amtel-Vredestein in late March. However, the newspaper also quotes Sibur Russian-Tyres director, Igor Karavaev as saying he considers it unrealistic that any investors will be able to purchase Amtel’s assets, especially foreign players.

30th June 2009/by Tyrepress Editors

Sibur to Produce New Premium Compound Rubber

Sibur LLC reports that investment in a project centred on producing new rubbers at its Voronezhsintezkauchuk facility in Southwest Russia has been finalised. The project involves transferring a part of its polybutadiene rubber production to neodymium catalysts system technology (SKD-ND) plus the commencement of soluble butadiene-styrene rubber (DSSK) production.

This modified technology, says Sibur, will enable the company to produce new types of compound with durability, wear resistance and environmental parameters that compare with the highest global standards. These compounds will be used in the production of medium and premium segment tyres.

18th June 2009/by Tyrepress Editors

Apollo Concludes Vredestein Banden Acquisition

The Apollo Tyres acquisition of Vredestein Banden BV, now officially concluded, has been described by Vredestein Banden CEO Rob Oudshoorn as a “win-win combination for both companies.” With all regulatory approvals and place and consent from the Judge of the Dutch Courts granted, Apollo now holds a 100 per cent share in the Netherlands based manufacturer. While official statements on the acquisition give no purchase price for Vredestein-Banden, the Wall Street Journal notes that a ‘person familiar with the situation’ disclosed a sum of 175 million euros.

18th May 2009/by Tyrepress Editors

Apollo’s Vredestein Acquisition Worth $300 Million – Analyst

The Apollo Tyres acquisition of Vredestein Banden, which should be finalised in late May, is said to be a deal worth in the vicinity of US$300 million. This figure was put forward by India’s Hindustan Times and was provided by an industry analyst who wishes to remain anonymous.

“Vredestein was bought over by Amtel in 2005 for $260 million so this acquisition would at least amount to $300 million,” said the analyst. “The deal is a win-win situation for Apollo as it not only gets access to high-end technology which it can also bring into India, but also a firm marketing and sales foothold in Europe.”

7th May 2009/by Tyrepress Editors

Nokian Sales “Down in Line With Market,” says Gran

Actual interim results for the January to March 2009 quarter show Nokian Tyres’ operating income to be even lower than the figure anticipated by a Reuters analyst poll. The company’s interim report, released May 7, reveals an EBIT of minus 2.7 million euros for the quarter, down from 54.4 million a year earlier. The mean estimated EBIT calculated from a Reuters survey of eleven analysts was four million euros. Net sales during the quarter stood at 155.6 million euros, 36.8 per cent lower year-on-year. A net loss of 10.4 million euros was recorded in the quarter, contrasting with a net profit of 45.1 million euros in the first quarter of 2008. The analysts surveyed by Reuters anticipated a net loss of seven million euros.

”Nokian Tyres’ first quarter net sales went down to the level of the corresponding period in 2006,” noted company president and CEO Kim Gran. “Nokian Tyres did not make profit in the first quarter due to low sales, operative streamlining measures, currency devaluation on our main markets, and the seasonal weakening in our sales mix. We took strong actions to adjust our preseason sales and production to the changed market conditions.

7th May 2009/by Tyrepress Editors

Vredestein Banden Bought by Apollo Tyres

Apollo Tyres has agreed to buy Vredestein Banden following approval from the trustee in bankruptcy at the Almelo Court in the Netherlands which rubber stamped Apollo Tyres’ offer to acquire a 100 per cent stake in Vredestein Banden B.V. (VBBV), a 100 per cent subsidiary of Russia’s largest tyre manufacturer Amtel-Vredestein NV (AVNV). No details of price or further conditions have yet been released, however, according to an official statement on the matter, the parties will only be in a position to disclose this after “certain conditions have been met and certain approvals, including regulatory and statutory approvals are granted, wherever required.”

According to a statement Apollo Tyres’ board of directors gave their approval to the management to proceed with the acquisition of Vredestein Banden today (29 April 2009). Dutch newspaper, De Twentchse Courant Tubantia quoted Vredestein Banden CEO Rob Oudshoorn as saying: “We are relieved and happy…We have had good connections with Indian market leader Apollo for 15 years.”

29th April 2009/by Tyrepress Editors

Belshina Boosting its Presence in Canada

Ukrainian tyre manufacturer Belshina is attempting to strengthen its position in the Canadian market. The Belarusian Telegraph Agency reports that Beltyre, Belshina’s export business, has opened an official representative office in Vancouver and from this base will work towards boosting sales through the promotion of tyres best suited to the market.

28th April 2009/by Tyrepress Editors

Turbulent Times for Conti’s Dr. Nikolin

Dr. Nikolin, responsible for both Continental AG’s passenger tyre and commercial vehicle tyre divisions since the departure of Alan Hippe, is in the bad books with a sizeable chunk of the company’s workforce. He is, of course, the man who recently simultaneously announced the closure of two facilities – the first in Clairoix, France and the second in the company’s home city of Hanover, Germany. Since this time the road along which he’s travelled has been, to put it nicely, a little bumpy. High-level politicians both in France and Germany, with the saving of jobs in mind, have grabbed hold of the issue.

The blame for the planned closure of the Clairoix facility can’t really be pinned on Nikolin; this was already in the pipeline at the end of last year. But regardless of whose decision it was, the response from Paris is that the French President, a popular target for demonstrations during his two years in office, really can do without further news like Conti’s in the Paris region. Sarkozy’s economic policy is geared towards enhancing the country’s competitiveness, and amongst other measures this includes a future extension of weekly working hours. Such increased demands on the French workforce have also come from management at Continental, and have to a large extent already been implemented – around two years ago workers agreed to a longer working week to boost production when demand was high. Yet the very clear signals coming from “French politics” in recent times appear to have been enough to make Hippe hesitant and relegate the matter to the backburner for the time being. Vehement protests now seem to be inevitable. It looks like Continental will at any rate have to weather serious damage to its image in France, and perhaps there is nothing it can do about it.

20th April 2009/by Tyrepress Editors

Is Conti’s Truck Tyre Production Heading East?

Company News, International News, News

Tyres & Accessories sister publication Neue ReifenZeitung recently published reports that Continental has been considering moving its truck tyre production East and linking it with certain Russian tyre makers in the wake of the announced closure of its high tech Hannover-Stoecken truck tyre production plant. For a number of years the Russian tyre manufacturer Nizhnekamskshina has worked together with Continental within the framework of a technical agreement, having previously been involved in a technical partnership with Pirelli. The possibility of forming a 50:50 joint venture has been talked about since 2007, however to date the entire result of this joint effort is that the Russians are building a truck tyre factory and Continental is “only” contributing know-how and organising production processes, as well as delivering all the required equipment. The target is said to be for production capacity to exceed one million all-steel tyres per annum.

20th April 2009/by Tyrepress Editors

Amtel-Vredestein Receives “Binding Offer” for Vredestein Banden

A buyer for Vredestein Banden has been found. In a written statement released on April 1, holding company Amtel-Vredestein N.V. says it has received a “binding offer from an industry player” for the purchase of the total share capital of Vredestein Banden BV. According to company CEO Rob Oudshoorn, the agreement is “very binding”, and it is “highly unlikely” that an acquisition of Vredestein shares would fail.

3rd April 2009/by Tyrepress Editors

Nokian Q1 2009 Sales Down following 2008 Sales Growth

At the Nokian Tyres’ Annual General Meeting, held on April 2, company president and CEO Kim Gran announced that first quarter 2009 net sales are clearly lower than in the first quarter of 2008 and a net loss is expected. On a more positive note, Gran estimates that the first quarter will be the weakest of the year, and Nokian Tyres’ sales will increase during the other quarters. Full year net sales in 2009 will, however, be weaker than in 2008.

Last year proved to be Nokian Tyres’ 17th consecutive year of profitable sales growth, the company president and CEO told AGM attendees. Net sales of 1.08 billion euros for the financial year ending December 31, 2008 represent a 5.5 per cent increase on 2007 results, and operating profit increased a similar amount

3rd April 2009/by Tyrepress Editors

Avon Tyres supports Formula Student teams

Avon Tyres Motorsport is supporting Formula Student competitions around the world by offering a preferential rate on its Formula Student-specific tyres to any colleges and universities who take part in the events. Run in the UK by the Institution of Mechanical Engineers and known internationally as Formula SAE, the Formula Student concept pits educational institutions from around the world against each other in order to promote excellence in engineering.

Teams from as far afield as India, Russia and Canada will join establishments from across Europe at Silverstone in July, with over 100 universities hoping to take part in Formula Student 2009. All will have to design and build a small single-seater racing car to perform well in several areas including sprinting, acceleration, skid pan, endurance and economy tests, as well as being judged on the car’s design, cost and presentation.

3rd April 2009/by Tyrepress Editors

Tatneft Moots Lanxess JV

Rafinat Yarullin, the general director of Russia’s OAO Tatneftekhiminvest Holding (parent company of tyre manufacturer Nizhnekamskshina) is said to have approached Lanxess to discuss the viability of a joint venture for the production of high-technology rubber materials. The German chemical company has already has a presence in the country, having established a sales company in Moscow to its operations in Russia and the CIS. In addition, Lanxess subsidiary Rhein Chemie has plans to build a facility outside of Russia’s fourth largest city, Nizhny Novgorod. The plant will produce polymer additives for rubber and tyre factories, and begin operations by mid-2010.

26th March 2009/by Tyrepress Editors

Toyo Sponsors World Cup Ski Jump Final

Toyo tyres is sponsor of the World Final of the FIS Ski Jumping World Cup, which will take place in Planica, Slovenia between 19 and 22 March through Slovenian distributor, Span. According to the tyre company, the final is the biggest sports event in Slovenia attracting an audience of over 57,000 in 2008. In addition, two million viewers watch the final on TV around the World. Competitors come not just from the traditional Scandinavian countries but from all over Europe and beyond including Russia and Japan.

Sponsorship brings with it coverage from the giant signs (positioned to give the brand maximum publicity) and TV time on most of the major TV channels broadcasting in Europe including the BBC, CNN and Eurosport.

18th March 2009/by Tyrepress Editors

Sibur Halts Amtel-Vredestein Debt Deal

Sibur has suspended talks with the creditors of Amtel-Vredestein after Sberbank (which is Russia’s largest bank and responsible for 20 per cent of its debts) failed to decide whether or not to participate in the debt restructuring negotiations. However, company sources have reaffirmed their continued interests in buying Amtel’s assets.

13th March 2009/by Tyrepress Editors