Amtel sees 18 percent growth, expects to complete Vredestein buy soon
By Liz White, ERJ staff
Moscow-Sales at major Russian tyre maker Amtel Holdings Holland grew 18 percent in 2004 to $451 million (Euros 346 million), according to preliminary results announced by AHH managing director Alexei Gurin during a 1 Feb press briefing at Russia's annual tyre exhibition, Tires & Rubber 2005.
â€œ2004 was another exceptional year for Amtel,â€ commented Amtel president Sudhir Gupta, in a press statement: â€œWe significantly increased production capacity, sales, profits and market capitalisation. ... Moreover, we virtually completed our three-year, $200 million programmeâ€ to expand and update production facilities.
The Russian tyre maker added that it intends to finalise its purchase of the Dutch-based international tyre manufacturer Vredestein Banden in the first quarter of 2005. â€œThis acquisition makes Amtel a global company and provides access to additional technology and manufacturing expertise," said Gupta. The deal also gives Amtel European and North American distribution networks, he added.
Amtel made more than 14 million tyres in 2004, noted Gurin, adding that this 21 percent year-on-year increase resulted from the addition of the Amtel-Chernozemye I production line, in which Amtel invested over $50 million in 2004.
â€œIn 2006, when construction is completed on the Amtel-Chernozemye-II Greenfield in Voronezh, total tyre output company-wide will reach 20 million tyres per year,â€ said Gupta.