Amtel-Vredestein looking to sell off Moscow tyre plant and relocate

ERJ staff report (SS) Enschede, The Netherlands -- Amtel-Vredestein NV is considering selling off its Moscow tyre plant and relocating tyre production to its Voronezh, Russia facility.

The company said in a 17 Dec statement that it has held discussions with several companies, but negotiations may or may not lead to any agreement. A further announcement will be made in due course. Options include closing the plant and selliing the land for commercial or residential use.

The Moscow tyre factory has a long and troubled history. After long negotiations Continental acquired a significant stake in the company which operated a run-down, near-obsolete factory in a Moscow suburb. Conti installed equipment taken from its former Gislaved plant. But in the end, it proved impossible to run an efficient factory and Conti exited.

Amtel-Vredestein bought the factory and attempted to run it efficiently, but in the proximity of the factory to residential housing and the Moscow city government's plans to minimise pollution and noise have made it a difficult factory to operate profitably.

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Press release from Amtel