LONDON (Jan. 13, 2006) — Amtel-Vredestein N.V. has completed the sale of its Volgograd, Russia, carbon black factory and disclosed plans to “sell or otherwise dispose of” its truck, farm and aircraft tire plant in Krasnoyarsk, Russia.
The firm, which represents the combined assets of Russia's Amtel Holding and the Dutch tire maker Vredestein N.V., also has bought six retail outlets in the Russia's Perm region in the Ural Mountains about 800 miles east of Moscow.
Amtel-Vredestein sold the Volgograd carbon black plant for $21 million to companies associated with another Russian carbon black maker, Omsk Black Carbon Plant. The company will take a $3 million write-down for the year ended Dec. 31 on the sale.
Regarding the Krasnoyarsk plant, Amtel-Vredestein said the Soviet-era plant does not fit its strategy, which focuses on making and selling higher profit-margin mid- and premium-range tires.
"AV hopes to find a buyer for the Krasnoyarsk facility and is sensitive to the issue of continuity for its management and employees,” the firm said in a prepared statement. At last report, the 45-year-old Krasnoyarsk plant had more than 4,000 employees and produced about 2 million tires a year.