MOSCOW (Aug. 19, 2008) — Amtel-Vredestein N.V. has halted production temporarily at its Kirov tire factory because of a lack of working capital.
The company said work will restart when it gets more capital, which is unlikely to be before the end of the month. Amtel-Vredestein expects to receive a second portion of a stabilization loan to be provided by Sibur Russian Tyres by Aug. 29.
Amtel said it is taking steps to ensure the Kirov plant will return to normal operating rates and inventory levels as soon as possible.