ENSCHEDE, Netherlands (Dec. 18, 2007) — Amtel-Vredestein N.V. said it may sell its Moscow tire plant and relocate production to its Voronezh, Russia, factory.
The company has held discussions with several companies, but nothing has been decided. Options include closing the plant and selling the land for commercial or residential use, Amtel-Vredestein said.
Amtel-Vredestein acquired the plant in July 2006 after Continental A.G. had spent nearly two years trying to make the 62-year-old factory competitive. Conti installed equipment taken from a former Gislaved factory in Sweden, but in the end it proved impossible to run an efficient operation and Conti sold the plant.
Amtel-Vredestein said the plant's proximity to residential housing and the Moscow city government's plans to minimize pollution and noise have made it difficult to operate the facility profitably.