Conti setting up Russian venture
MOSCOW-Continental A.G. is setting up a tire-making joint venture with Moscow Tyre Plant and will invest $29.5 million over three years to build a factory adjacent to Moscow Tyre's existing factory.
The new, as yet unnamed, joint venture will start production in the third quarter of 2003, with an annual capacity of 1.5 million Continental and Barum brand passenger and light truck tires. Capacity will more than double to 3.4 million units by 2006, the companies said, with most of the output destined for the local market.
The agreement, signed Sept. 10, formalizes a planned venture the two parties had discussed in April 2001.
Moscow Tyre will provide the site for the tire facility at its plant in Moscow's central Taganskaja district. Continental, which will be majority owner, will provide the know-how.
Pirelli, Ceat seek supply contract
MILAN, Italy-Pirelli S.p.A. is negotiating a tire supply contract with India's Ceat Ltd., including the provision of certain production equipment to the Mumbai, India-based tire maker, the Italian group said.
The Financial Express of India reported recently that Pirelli had agreed to outsource production of 10,000 radial passenger car tires a month to Ceat, starting this October. This report is ``basically correct'' but talks over the deal are still in progress, a Pirelli spokesman said.
Pirelli previously has signaled its intention of forming alliances in India as long as it could maintain control over product quality. Until now, however, the group's presence has been limited to a technical tie-up with Birla Tyres of Calcutta.
Ceat, the tire-making arm of the RPG Group of India, is principally a supplier of bias-ply tires, but has been trying to establish a greater presence in the radial tire market.