Amtel stops tyre production at Kirov due to lack of money

ERJ staff report (DS)

Moscow -- Amtel-Vredestein NV said it has temporarily stopped production at its Kirov manufacturing facility due to lack of working capital. The company said work can re-start when it gets some more capital, which is unlikely to be before the end of the month. The Company expects to receive a second tranche of the stabilization loan to be provided by Sibur Russian Tyres, subject to the passing of resolutions at the EGM, scheduled for 29 August 2008.

Amtel said it is undertaking steps to ensure that the Kirov plant will return to normal operating rates and inventory levels as soon as possible. Assuming the second tranche of the stabilization loan is advanced soon after the EGM on 29 August 2008, this temporary halt will not affect the Company's ability to meet its supply obligations in a timely manner.

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Press release from Amtel-Vredestein