RDIF, Titan, One Equity Partners to invest in tyre plant
MOSCOW. Oct 3 (Interfax) - The Russian Direct Investment Fund, Titan International and One Equity Partners will shortly be completing a deal to invest in a tyre plant, RDIF CEO Kirill Dmitriev told the press Wednesday on the sidelines of the VTB Capital Russian Calling forum in Moscow.
"This is a deal with Titan International, a major tyre producer," he said. "The deal will be finalized today or tomorrow," he added.
The deal is worth a total of $115 million, with RDIF investing $50 million.
The deal will mean tyres for export can be produced in Russia.
In June 2013 it was announced that a consortium consisting of RDIF, Titan International and One Equity Partners had reached a principle agreement with Kordiant to invest in OJSC Voltyre-Prom .
The consortium will have the controlling stake in Voltyre-Prom and Titan International will be the managing partner.
Voltyre-Prom had a 43% share of the Russian agriculture tyre market in 2012 and 16% of the industrial tyre market. The company produced 1.35 million tyres last year.
Titan plans to upgrade production equipment at Voltyre-Prom, which will enable the future substitution of imported tyres on the Russian market.
The agreement with the consortium envisages a three-year partnership with Kordiant on the sale of tyres, Kordiant CEO Dmitry Sokov said.
Kordiant (former Sibur - Russian Tyres) is owned by its management. The holding company's investment program envisages investment of around $550 million in expansion, which should lead to production of around 12 million tyres per year.
