Russia's TADEM talks future expansion
ERJ staff report (TP)
Moscow – TADEM Company Group, a Russian moulded rubber product manufacturer, was at the Tires & Rubber Exhibition to discuss their grand vision for the future.
Alexander Shoutov, General Director, spoke with ERJ last week at the show.
TADEM has its origins in the 1970s in the old Soviet era, but it is the “market leader” at the moment. Shoutov says they are the largest supplier of such items as hoses, seals and rubber compounds.
“This year, the automotive industry in Russia has not been an easy one,” he said. “Sales have dropped – not just because of the situation in Ukraine, that made it harder to work with Ukraine, but we still sold to them.
“It dropped because people are thinking about other things than their car.”
However, despite this change in the market, TADEM works with some major car companies – such as Ford and Hyundai.
Shoutov also explained about the firm’s past and expansion plans.
“In the past 2.5 years we’ve been looking to change our financial model from an old Soviet style – to being able to trace every kilogram and gram of rubber that goes in, to what comes out.
“Maybe for Europe that is normal, but for Russia this is something quite different. It is very hard to implement but we managed to do it [and] we’re quite happy with that.
“We’re also cutting costs. Again, as in any ex-Soviet plant, we had everything – our own kitchens, catering was on site, own transport, everything. But we have cut personnel by half.
“We’ve been constantly investing in new technology and new equipment.
“This year we’re talking to G3 [an Italian rubber and plastic machinery company] and have planned a large project involved with the mixing room. This involves lines for supplying carbon black [and so on].”
TADEM also has plans to completely change two to three lines for belts, which as Shoutov explained is a huge investment.
“We’re making an investment proposal to put in front of the board.
“We have been making belts for 10-15 years, but new moulded belts and teeth are being demanded by customers – so we must go for it.”