Continental AG, Europe’s second-largest tire manufacturer, has stated that the company will establish automobile tire factories in India and Russia in 2010 to meet local market demand while avoiding import restrictions.
“If we want to become a strong competitor in the local area, there is no doubt that we must establish a production base there,†said Nikolai Setzer, head of the mainland tire business, in an interview. “At the moment we are still evaluating various options, but we hope to have a conclusion this year.â€
At present, Russia imposes a tariff of 20% on imported tires, which is close to that of China. Russian authorities hope to protect local manufacturers through high tariff policies. In addition, Russian authorities also encourage local manufacturers to accelerate their products through various complicated certifications by acquiring foreign companies.
Setzer said that the mainland hopes to generate cash flow through the growth of business in Asia and Russia to repay debts of up to 8.2 billion euros. However, he did not disclose the size and capacity targets of the investment.
In 2009, mainland tire rival Michelin announced that it will double the capacity of the Davydovo tire factory in Russia and will build a new factory to supply the Russian truck tire market. In addition, Italian tire manufacturer Pirelli also plans to purchase factories in Russia to achieve local production.
Shenzhen Apex Artcrafts Co,.LTD , https://www.apexdisplaycn.com