AMTEL HOLDINGS HOLLAND NV is the parent company of AMT Group, one of the leading manufacturers of tires for cars and other modes of transport.
The deal will allow AMTEL to expand its operations in Europe, Asia, the CIS countries and North America. The total production capacity of AMTEL Group including Vredestein Banden BV will be about 22 million tires per year.
“We are confident that this acquisition will make AMTEL a truly European company,” said Sudhir Gupta, Chairman of the Supervisory Board of AMTEL. “Vredestein brand, known for its quality and production technologies, will allow the consolidated enterprise to effectively compete in all market segments, both in Russia and abroad.”
“This acquisition will provide us with access to production technologies and secrets, distribution networks in Europe and North America, a unique, market-oriented product line, additional managerial and labor resources,” said Alexey Gurin, General Manager of AMTEL.
The total sales volume of Vredestein Banden, an independent Dutch tire manufacturer with a 60-year history, amounted to over 230 million euros in 2004 in four segments: tires for cars and light trucks; bicycle tires; tires for agricultural machinery and industrial vehicles. The company has a network of sales offices throughout Europe, is represented in the United States and Canada. About 30 percent of all sales are in Germany.
"Vredestein Banden will continue to specialize in the production of UHP (ultra high performance) and HP (high performance) tires, as well as research and industrial design programs, " said Robert Oudshoorn, General Manager of Vredestein Banden."
Recall that AMTEL is one of the three largest tire manufacturers in Russia and has a significant market share. The group includes three production complexes - Amtel-Volga Region (Kirov), Amtel-Chernozemye (Voronezh) and Amtel-Sibir (Krasnoyarsk), chemical enterprises Amtel-Kuzbass (Kemerovo), Amtel-Carbon”(Volgograd Carbon Black Plant) and tire factory in Ukraine (Bila Tserkva).
The total production of tires by the factories of LLC Holding Company AMTEL amounted to 14.4 million units, with annual growth in production volumes by 21 percent.