5 Jun 2018 16:59

Metafrax to begin tire component production in Austria for 10.5 mln euro by 2020

PERM. June 5 (Interfax) - Metafrax plans to begin production of chemical products for the tire industry at a subsidiary, Metadynea Austria GmbH (Krems, Austria), in the second half of 2019, a Metafrax spokesman told Interfax.

"Plans are to launch production of output used in car tires to improve braking ability and reduce wear," the spokesman said, adding that European companies would be the main consumers of the new output.

The facility will have capacity to produce about 1,000 tonnes a year of the new products. Investment in the project will total an estimated 10.5 million euro.

"This is our own and borrowed resources. We cannot name the proportion right now. However, the readiness of banks to finance this major project speaks to the good outlook for the product," the spokesman said.