MOSCOW (Aug. 24, 2005) — Amtel Holdings will begin making Vredestein-brand tires at its own tire plants in Russia this year to complement tires it is importing from its Amtel-Vredestein unit in Enschede, Netherlands.
Amtel recently completed its $256 million takeover of Vredestein, and this production arrangement is part of the group's new structure.
Amtel is planning to make 15,000 Vredestein-brand tires this year at its factory in Kirov, Russia, to supplement 30,000 imported Vredestein tires. In 2006 this will increase to 200,000 imports and 1 million manufactured in Russia, the firm said.
The company said the Enschede plant has capacity for about 5 million tires per year, while Amtel's total production in 2004 was 14.4 million units.