MOSCOW (June 20, 2013) — Titan International Inc., together with two equity/investment firms, have agreed to invest an as-yet undisclosed sum in Voltyre-Prom, a Ekaterinburg, Russia-based agricultural and industrial tire maker, to take a "controlling" stake in the firm.
The offer, put forth by a consortium involving Russian Direct Investment Fund (RDIF), Titan and One Equity Partners (OEP), involves an "agreement in principle" with Russia's JSC Cordiant—the manufacturing venture previously known as OAO Sibur Russian Tyres—to invest in Voltyre-Prom.
The transaction is expected to be finalized in the near future, the consortium said.
Titan will become the managing partner of Voltyre-Prom, according to a statement released by the consortium June 19 in Moscow. The consortium's investment will allow Voltyre-Prom to update its operations, grow its production of specialty tires for international agricultural machinery, reduce imports by shifting production to Russia and begin to explore export opportunities, the statement said.
"Titan has plans to grow its tire, wheel and track footprint in Russia and CIS countries," Titan Chairman and CEO Maurice Taylor Jr. said, referring to the nations of the Confederation of Independent States.