23 May 2003
Vneshtorgbank andtel agreed on long-term strategic partnership towards modernisation of Voronezh tyre works (VTW).tel company together with Vneshtorgbank will make retrofitting of VTW within the framework of its strategy aimed at expanding capacities to produce brand tyres jointly with Nokian Tyres, Finland.
Vneshtorgbank will give VTW a ?13 million credit line for 5 years. Under the Vneshtorgbank strategy towards funding manufacturing projects of the leading Russian industrial companies, lending is granted on most competitive terms. Operations are financed subject to credit lines opened to Vneshtorgbank by major international banks under guarantees from EU export credit agencies.
Vneshtorgbank`s credit line will be used on a special purpose basis to purchase up-to-date technology equipment from world leading companies. On modernised capacities VTW plans to produce new generation tyres unparalleled in CIS countries.
At present,tel company`s market share is 28 per cent of the CIS tyre market, whereas 35 per cent falls on passenger car and light truck class, and 80 to 100 per cent in some market segments (carrier trucks, aviation and special tyres).
Voronezh Tyre Works was incorporated in 2001 on the basis of Voronezhshina tyre plant assets and started its operations in April 2002. Authorised capital is 350 million roubles. Shareholders aretel Group (76%) and Voronezhshina Inc. (24%).
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