Avtovaz opts not to order tire cover supplies from SIBUR-Russian Tires
MOSCOW. Aug 25 (Interfax) - Avtovaz has decided not to order supplies of tire covers from SIBUR-Russian Tires even though the companies have resolved a dispute over debt, the carmaker's press service told Interfax.
"At present, Avtovaz is receiving all its tires for the assembly of Lada automobiles from the company Nizhnekamskshina," the company said, noting that it only plans to work with this company in the future.
"Avtovaz signed an agreement on strategic cooperation with Nizhnekamskshina under which the plant was given prices on the level of 2007," the carmaker said, adding that "based on an analysis by Avtovaz's procurements service, the products produced by SIBUR-Russian Tires are currently lagging behind those of other producers in terms of the price/quality ratio."
The Samara Arbitration Court last week endorsed an amicable agreement signed on August 17 by SIBUR-Russian Tires and Avtovaz on a suit in which the tire producer was seeking to recover 103 million rubles in debt from the carmaker for supplies of tire covers.
A spokesman for SIBUR-Russia Tires told Interfax that "the issue of debt has been fully resolved and supplies of tire covers to the company will resume under the condition that Avtovaz strictly fulfills the terms of the contracts."
An Avtovaz spokesman told Interfax that the company repaid 100.965 million rubles in debt to SIBUR-Russian Tires back on July 10 and that, under the amicable agreement, the tire producer had opted not to seek interest payment from the company amounting to 2.471 million rubles.
SIBUR-Russian Tires suspended supplies of tire covers to Avtovaz at the start of 2009 due to the company's debt. About 10% of the tire covers the company produces are shipped to Avtovaz.