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Cooperation Platform / News / August 2010

Tyre Business

16.08.2010

Tyre Business

 The report was made by the marketing agency Russian Automotive Market Research

The Russian tyre market showed quite a stable growth on the level of 15% annually before the crisis. Upon the crisis, this market suffers a deep decline and the recovery may take more than a year.

The Russian tyre market is one of the most promising and at the same time one of the most competitive markets. The growth in the living standard of the population and the positive growth of the domestic economy have brought about a rapid growth in the Russian automotive market, giving, thereby very good opportunities to tyre manufacturers. Foreign companies engaged in the manufacture of tyres evaluated the potential of the Russian market very fast. Such manufacturers were able to offer high service standards and wide range of products to the Russian consumers. As a rule, these are high-quality products of world brands that are concentrated in the highest price segment (segment A) and also quality tyres that are referred to the medium segment (VFB – value for money, segment B). Tyres that are referred to the lower price segment (economy class, segment C) were offered mainly by domestic manufacturers. Also, some small little-known companies from Asian-Pacific Region countries offer cheap low-quality products on the Russian market.

Segment A usually includes such brands as Michelin, Bridgestone, Nokian, etc. Segment B is represented by such makes as Kumho, Matador, Amtel, Kama-Euro and others. As for segment C, usually it includes inexpensive low-quality tyres.

The leading foreign tyre manufacturers that work on the Russian market, created, in a course of time, new behavior patterns on the market and Russian companies got interested in them. During the last pre-crisis years, domestic enterprises managed to enhance the technical basis, update the marketing policy by integrating new and more effective customer relationship techniques.

Before the crisis, one of the common trends in the Russian market had been connected with the change in the demand for the more expensive and quality products manufactured by famous foreign companies. This happened mainly because of the presence of analogous products on the Russian automotive market.

The situation has changed under the crisis: the decline in the sales of cars of medium price segment directly affected the demand for tyres for this kind of vehicles. Besides, those car owners who had bought vehicles before the crisis became more reasonable about purchase of tyres and now prefer to buy cheaper products of acceptable quality. As a result of these changes, those foreign manufacturers that produce tyres for the said cars, incurred losses.

At the same time, foreign tyre manufacturers concur that such changes in the consumers’ preferences is a temporary event. As soon as the economic situation starts to improve, the demand for segment A and B tyres will gradually recover.

Speaking about the structure of the Russian tyre market, it is necessary to mention leading domestic manufacturers that are “SIBUR – Russian Tyres”, “Amtel” and “Nizhnekamskshina”. Besides, “Altai Tyre Plant” which is now gaining its share on the Russian market and “Petroshina” are also engaged in the manufacture of tyres.

Also, JV “Matador-Omskshina” the co-owner of which “SIBUR – Russian Tyres” is, continues its work.

Michelin, the production capacities of which are located in Davydovo, Moscow region, and Nokian, the plant of which is situated in Vsevolozhsk, Leningrad region, represent the segment of large foreign manufacturers that opened enterprises in Russia. Many foreign manufacturers who wanted to locate their plants in Russia and had claimed to do so until recently, postponed such plans due to the crisis. The majority of foreign companies prefer to export tyres in Russia.

Besides, Michelin and Nokian, it is also necessary to mention those foreign tyre manufacturers that mainly export their products in Russia, namely Bridgestone, Goodyear, Continental, Hankook, Kumho and others.

Among the near abroad manufacturers that supply tyres to the Russian market, we can name such companies as “Belshina”, “Rosava”, “Dneproshina” and some others. By the way, the crisis even consolidated their positions on the Russian market. Before 2008-2009, those consumers for whom the price was quite important, preferred to buy products of domestic manufacture, even in spite of the fact that sometimes they could be a bit more expensive than analogues from Belarus and Ukraine. According to some experts, after the crisis purchasers started to give preference to cheaper tyres made in CIS countries, particularly to those made by “Belshina” which has recently started to rapidly consolidate its positions on the Russian market.

Besides, companies from Asian-Pacific Region, particularly from China, started to gain shares on the Russian market. Such brands as Zhongce Rubber, Shandong Chengshan Tire, Leao, LingLong, Sentaida, Fullrun and some others are already familiar to Russian consumers but this kind of manufacturers who make inexpensive mass-market products impede the activity of domestic enterprises.

At present, the position of enterprises that supply its products to the Russian market is more complicated, despite the rapid development of tyre import that had taken place until recently. According to some experts, the devaluation of ruble aggravated the importers’ positions on the Russian market to a certain extent. At the same time, the weakening of the national currency favoured the consolidation of domestic tyre manufacturers. The others, on the contrary do not think that the devaluation of ruble weakened foreign companies’ positions on the Russian market and thereby helped domestic manufacturers to improve their positions. National currencies in the countries that export tyres were also affected by the devaluation and in spite of this fact, the growth rates are highly competitive with those in Russia.

The position of domestic companies also worsened and they occasionally talk about the necessity of the industry support. This can be done by means of traditional measures of customs and tariff regulation, particularly, by introducing higher import duties for this kind of products.

Besides, the reduction of some import duties for certain raw materials would also support the Russian industry, including rubber, that is indispensible in the tyre manufacture. A lot of domestic manufacturers agree with these measures. It is necessary to note that these propositions were taken into account, for instance, on 18 August 2008, the Government of the Russian Federation issued a Decree that approves the zero interest rate of the import duty for smoked sheets rubber (Commodity Code Listing of the Foreign Economic Activity - 4001 22 000 0), and also lump rubber in other forms (Commodity Code Listing of the Foreign Economic Activity – 4001 29 000 0). On 16 November 2009, the Government of the Russian Federation issued Decree No. 932 in which the zero interest rates for these two kinds of rubber were approved once more and they will be valid during 9 months. The problem of the repeated cancellation of import duty rates for lump rubber was tackled by JSC “SIBUR – Russian Tyres” and was approved of by the Commission at the Government of the Russian Federation for the Preventive Measures in Foreign Trade and Customs-Tariff Policy. Igor Karaev, Deputy Director General for the strategic development at JSC “SIBUR – Russian Tyres” thinks that “the drop in prices for lump rubber is especially important for the manufacture of truck tyres with all-metal cord where it accounts for more than 40%”. According to some specialists, the economic effect caused by the cancellation of the import duties for lump rubber for domestic tyre and rubber manufacture may be 55-70m RUB in 2010.

The Tyre Market Capacity in the Russian Federation, million units.

At the beginning of the crisis, the Russian tyre market managed to avoid a deep decline that was observed on the automotive market. However, the crisis consequences unfolded to the full extent in the tyre industry in 2009.

According to the data of “SIBUR – Russian Tyres”, in 2008, the Russian tyre market capacity of all kinds made a total 51,4m units. Despite the beginning of the crisis, the market even showed a slight positive growth: the real growth in 2008 against that in 2007 just slightly exceeded 1%. At the same time, the first nine months of 2008 were quite stable. Furthermore, a significant increase of +2,2% took place in the third quarter of 2008 compared to the second quarter of the same year. The demand started to considerably decline in the last quarter of 2008 when the market shrank by 35,2% against the third quarter of 2008. The same decline rates were observed on the market in 2009 when its capacity declined by 35,6% (to 33,1m units) compared to 2008. At the same time, during the first three quarters of 2009 the demand nonetheless started to recover. For instance, in the second quarter of 2009 the growth made a total 19,1% against the first quarter of the same year. In the third quarter of 2009 against the second one, the demand increased by 21%. However, according to the results of the year, such growth rates did not help the market to overcome such a decline.

The slump in the demand on the part of automotive plants and ultimate consumers manifested itself in the decrease both in the domestic manufacture and in import. In 2009, the decline in the domestic manufacture that accounted for a large market share made a total 26,8% against 2008. However, the decrease in the domestic manufacture of tyres was observed already in 2008 but at that time, against 2007, this decline was not so significant (-10,4%). In 2009, the import of tyres declined by 36% against 2008 while in 2008 against 2007 an increase was observed in this segment (+24,4%).

The fall of the domestic demand forced the tyre manufacturers that make products in this country to more actively work on the external markets and this resulted in a certain increase in the export tyre supplies. The export of this kind of products in 2009 increased by 5% against 2008 (cf. in 2008 the supplies of tyres to external markets were 14% less than in 2007).

The slump in the Russian tyre market in 2009 was mainly connected with the drop in truck and car tyre sales that made 86,7% in the aggregate according to the results of 2009. The decrease in the segment of truck tyres in 2009 reached 40% against the level of 2008. The decline in the segment of car tyres made 36,3% as of the same period. Some experts think that the fall in the segment of car tyres is mainly connected with the changes in car owners’ behavior. First of all, consumers started to less actively operate their cars the brings about the extension of tyre life. Secondly, under the crisis a lot of car owners prefer not to buy new tyres till the old one are fully used even if such an economy is connected with a risk for the driver.

As for the industrial tyres, the sales in this segment in 2009 dropped by 50%. However, due to a small market share of these products, the effect produced by the fall on the decline of the whole market was insignificant. A very noticeable slump was observed in the segment of agricultural tyres in the past year: the sales dropped by 30,8% against 2008. The demand for light-duty tyres decreased less of all the sales of which in 2009 slumped only by 23,3% than in the year earlier.

The crisis manifested itself in the sales decline that occurred in all price segments without any exception. For example, the demand for segment A tyres in 2009 decreased by almost 46% against the level of 2008 while this index in 2008 against 2007 showed some positive growth of 30,2%. The segment B showed a 41,3% fall in 2009 against 2008, however the demand for this kind of tyres in 2008 compared to 2007 increased by 15,4%. The sales of segment C tyres in 2009 saw a less significant decrease than in segment A and B against 2008: only by 23%. In 2008, the demand for segment C tyres also was not high and the decline against 2007 made 19%.

The changes in the demand in 2007-2009 manifested itself in the redistribution of shares between different segments of the tyre market depending on their price brackets. The year when the crisis began is a very good example of this: the share of expensive segment A tyres in 2008 increased by 6,8% against 2007, and in 2009 it decreased by 5% and thereby almost reached the level of 2007. The share of tyres of medium price segment C in 2008 has significantly changed against the level of 2007: by 10,1%. At the same time, the share of segment C tyres in 2009 increased by 7,6% compared to 2008.

From the point of view of the seasonal prevalence of the products, the fall in the sales of winter tyres for cars was one of the deepest, since as a rule, new cars require the purchase a set of winter tyres. As for the market of summer tyres for cars, the decrease of it was not so deep.

A considerable decline in the demand for tyres brought about overstocking that forced manufacturers to develop new sales strategies. The participants of the Russian tyre market had to take unprecedented measures and reduced sale prices, offered bonuses, etc.

It is not improbable that according to the results of 2009, the fall on the Russian tyre market will be considered the most significant among all European markets. At the same time, foreign manufacturers consider Russia to be “a special market which can be compared with neither European nor with American markets”. For instance, the German tyre market has recovered after several years of decrease in the sales volume and it is very likely to start growing already in this year especially in the segment of winter tyres. It may happen thanks to the car scrappage scheme. In Russia, the situation is very unlikely to develop this way. At the same time, tyre market participants believe that the implementation of measures taken by the Russian government to support domestic manufacturers will bring some results. Concessional lending for Russian-made cars and the car scrappage scheme should bring about recovery of the Russian automotive market that will have a positive effect on the tyre market. Besides, a lot will depend on the general macroeconomic situation and if it improves then this will be one of the most important signals for the market recovery.

In 2010 the situation on the market remains quite difficult and manufacturers should not wait for a considerable improvements of the situation. According to market participants’ forecasts, the sales volume in 2010 is likely to remain on the level of 2009. At the same time, the outflow of clients from segment A to less expensive segment B and from segment B to cheaper segment C will continue to take place. Probably, in 2010 the sales in the segment of tyres for AWD vehicles and sport cars will grow and this situation can be explained by a less significant decline in the sales of new vehicles in these segments.

At the same time, despite pessimistic forecasts, we should not underestimate prerequisites for the improvement of the situation in the near future. On the tyre market, the deferred demand is building up and sooner or later it should be satisfied which situation will bring about the increase in sales. Furthermore, some experts think that the growth can start already in 2011.

Let us refer to the activity of Russian and foreign tyre manufacturers that work on the Russian market.

OJSC “SIBUR – Russian Tyres”

OJSC “SIBUR – Russian Tyres”, member of petrol-gas-chemical holding company “SIBUR Holding”, is one of the largest tyre manufacturers not only in Russia but also in Central and Western Europe. According to the results of 2008, the company entered TOP-20 of the largest tyre companies in the world, and in the European rating, “SIBUR – Russian Tyres” ranked five.

The tyre production of SIBUR – Russian Tyres is located in four plants: “Voltair-Prom”, situated in the city of Volzhsky, Volgograd region, “Ural-Tyre”, situated in Yekaterinburg, “OMSK Tyre Plant” situated in Omsk and Yaroslavl Tyre Plant situated in Yaroslavl. Also, SIBUR – Russian Tyres includes Saransk plant “Resinotechnika” and SIBUR – Volzhsky that is engaged in the manufacture of synthetic fibre. Besides, the company jointly with Continental (50/50) owns a joint venture “Matador-Omskshina”.

The enterprises of SIBUR – Russian Tyres holding company are engaged in the manufacture of a wide range of car, truck, agricultural and other kinds of tyres for all branches of industry. On the whole, the number of models is more than 400.

Tyres for cars are manufactured under the brand Cordiant which in 2009 was considered to be the best Russian brand in VFM segment, according to the results of a test conducted by the magazine “Za Rulem”. The tyres for commercial vehicles are produced under the brand Tyrex and the line-up of them is represented by different models including solid metal cord (SMC) of the most in-demand dimension types. According to SIBUR – Russian Tyres, Tyrex became the first brand in Russia in the segment of OTR and SMC. It is necessary to note that in 2009 the share of branded products increased in the product portfolio of the company. According to the results of the past year, the index of such products made 30% of the manufacture and this index exceeds that of 2008 by 4%.

As for the results of the production activity, in 2008, the company manufactured about 11m tyres. According to the preliminary results of 2009, during the past year the company sold 8,1m tyres, 6,8m out of which were manufactured in 2009 and 1,3m tyres were manufactured in 2008. Car and light-duty tyres account for a large share of 67% or, in terms of units, 5,4m. The tyres for commercial vehicles account for about 30% or 2,4m units. Other kinds of tyres including those for motor vehicles take 3% of 0,3m units.

It is planned to increase the output by 14% in 2010.

Vadim Turinov, the General Director of OJSC “SIBUR – Russian Tyres”, commenting on the results of the holding company’s activity on 2009, noticed the following: “In severe crisis conditions, our company managed to preserve and consolidate its positions as a leading Russian tyre manufacturer. We optimized the product line-up, established our own R&D centre and continued to invest money in promising productions. In 2010, we will continue working on the consolidation of the Russian tyre market,

development and integration of new technologies. We will also continue to supply modern and high-quality SMC tyres for trucks and branded car tyres to the domestic market”.

A large part of products manufactured by “SIBUR – Russian Tyres” is sold to ultimate buyers. The share of this segment in the structure of sales in 2008 made 89% and almost the same index was observed in 2009. Accordingly, 11% of the whole number of products were supplied to assembly plants and, at the same time, among production line consumers of the products of SIBUR – Russian Tyres there are leading Russian automotive plants. The tyres are distributed and sold by affiliates situated in Omsk, Yekaterinburg, Yaroslavl, Volzhsky (Volgograd region) and St. Petersburg and the distribution network is represented by more than 150 organizations. Furthermore, the company opened its central office in Moscow which supervises tyre supplies to corporate clients. Besides traditional corporate clients of the company, that represent car parts retail, there is a number of state departments such as The Ministry of Defense, the Ministry of Interior, EmerCom, etc.

The products manufactured by “SIBUR – Russian Tyres” are sold not only in this country but also abroad: it is sold in more than 50 countries. According to preliminary results of 2009, the sales of the company on external markets accounted for 20% of the whole sales volume.

Recently, the company has carried out active investment policy within the framework of which different activities which aim to consolidate market positions are conducted. According to the investment programme, $405m were invested in the development and support of the manufacture in 2007-2009. 2008 was the most fruitful year so to speak for the company when $197m were spent for these purposes. At the same time, the main part of this sum (81%) was allocated for the development of the manufacture. Among implemented projects, it is necessary to single out the manufacture of SMC of truck tyres with the annual output of 370 thousand units. $30m were allocated for these purposes. Also the manufacture of car tyres was launched with the annual output of 1,2m units. The amount of money invested in the project made a total $40m. In the future, the company plans to continue active implementation of the investment policy. The total amount of investment in 2007-2012 can hit $600m. At the same time, special attention will be paid to the development programmes of the manufacture of truck and agricultural tyres.

Despite the crisis, the manufacturer does not abandon ambitious plans: among strategic goals, “SIBUR – Russian Tyres” singles out the entrance to TOP-10 world tyre manufacturers, furthermore, it plans to preserve the leading position on the market of Western Europe. As for the Russian market, the company plans to occupy the position of an indisputable leader. Besides, SIBUR – Russian Tyres will continue to implement a large-scale selective porgramme designed to modernize productions including the manufacture of SMC tyres for trucks (the amount of money to be invested is reaching $280m) and the manufacture of car tyres made of corded polyester ($130m will have to be invested for these purposes). Also, it is planned to finish the processes of plants’ specialization and optimization of location of production capacities. Besides, the company wants to significantly increase branded products in the product portfolio: the share of such tyres is expected to increase to 50%. Furthermore, the manufacturer wants to increase the market share of car tyres in segment B to 30% by 2013. The same index on truck tyres including SMC should be driven to 35% and that on light-duty tyres – to 55%. The company also plans to enter segment A on the market of car and truck tyres. Special attention will be paid to creation of a unified R&D centre that will make it possible to reduce the technological gap and catch up with the leading market players. It is planned to improve many indexes of the company’s activity, particularly, to increase the working efficiency and production load, reduce the cost of raw materials and increase marginal profitability.

JSC “Amtel-Vredestein”

At present, JSC “Amtel-Vrederstein” is one of the leading players on the Russian tyre market.

The rapid development of the company required extension of the production capacities. The company acquired main production assets including tyre plants in Povolzhye and the Western Siberia and also enterprises of chemical industry situated in different regions at the end of the 90’s. Against the background of the favourable state of affairs on the market in the mid 00’s, the company managed to achieve significant results and enter the group of three largest domestic manufacturers.

In the middle of 2006, the GC “Amtel” announced its plans to purchase CJSC “Moscow Tyre Plant-M” (MTP-M), an affiliate of Moscow Tyre Plant (MTP). The affiliate had been founded several years before and was supposed to participate in a project on the set-out of a joint venture together with German holding company Continental. During the formation of the JV, the German party installed modern equipment. The aggregated output of the new production was supposed to be 3,5m tyres annually but the plants have changed.

Amtel company planned to satisfy the growing demand for tyres AMTEL thanks to the acquisition of the production assets of “Moscow Tyre Plant-M” that have modern technological base. The estimated output of the MTP-M after acquisition by Amtel was to be 2,2-2,5m units annually. At the beginning of 2007, the sale of “Moscow Tyre Plant-M” was closed. However, later it was sold to a company which is a member of Midland Resources Holding Limited which news was announced at the beginning of 2008. The new owner has assets in different branches of industry, at the same time, the business geography of Midland Resources Holding Limited is quite wide and includes not only Russia and Ukraine but also Canada, Serbia, Turkey and a number of other countries. The amount of transaction made a total $77m and included debt instruments of MTP-M. At that time, it was specified by “Amtel-Vrederstein” that “the profit from the transaction was aimed to reduce the debt of the company before Sberbank which is the holder of pledged shares of MTP-M, and to perform certain obligations connected with the purchase of MTP-M in 2006”. However, later some representatives of the company noticed that “the sale of “Moscow Tyre Plant-M” did not cause any serious losses. Technological chains and machinery of JSC “MTP-M” that were the most important from the point of view of production, were successfully relocated to other production sites of the group”.

Kirov and Voronezh still remains the main line of activity. Now, “Amtel” manufactures car tyres Amtel Planet (summer) and Amtel NordMaster (winter), and also light-duty tyres Amtel Cargo.

The manufacturer regularly updates the range of products: in 2007-2008, two new models were added to the product line up of “Amtel”. They were developed with the use of new European technologies and participation of designers and product engineers of Vrederstein. Particularly, a new snow tyre Amtel Nordmaster 2 was produced that embodied the most advanced technologies of the tyre manufacture called upon to improve roadability and increase safety. During the development of Amtel Nordmaster 2 the product engineers attempted to produce a model that would have good grip and reliable roadability. Thanks to the mathematically calculated design with 10 rows of studs on the circumference of the tyre, Amtel Nordmaster 2 provide prefect road hold on the ice in cross and longitudinal sliding. The angular flutes that widen to the edges of the tread and also zigzag lamels on the whole surface of the tread enhanced cross-country ability on the loose snow. Strong blocks on the edges and wide elements of tyre shoulders of Amtel Nordmaster 2 provide good roadability not only on city roads but also in the countryside on the packed snow and ice. Thanks to the presence of special elements in the structure of the rubber mix, tyres Amtel Nordmaster 2 preserve flexibility under very low temperatures.

“Amtel” produced new tyre Amtel Planet 3 for summer 2010. The tyre is designed for everyday ride and comply with the increased safety requirements. The advantages of Amtel Planet 3 are connected with such properties as effective water discharge, road holding and a low noise level. Thanks to a V-type tread pattern, the tyre provides fast water and soil discharge from contact points avoiding thereby the aquaplaning effect. The different spacing of the tread pattern significantly reduces noise. One more important peculiarity of the tyre is that it has enhanced road holding ability during the driving that makes it possible to increase the steer response and make the motion more predictable. This effect is achieved by means of a special structure of the model: the central rib coupled with two wide and two narrow longitudinal grooves ensure high road holding and rigid elements of the tread shoulder provide perfect roadability in direct motion and on turns.

According to the manufacturer’s data, in 2007, the share of the company in the segment of car tyres made 26%. In 2008, the company accounted for 18% and in 2009, according to the preliminary data – 15%.

Among clients of “Amtel” there are AVTOVAZ, GAZ, Avtoframos, TAGAZ and other plants.

Amtel tyres are usually sold to ultimate consumers vie wholesale and retail companies engaged in the sale of automotive tyres, specialized car parts centres, service stations and car sales centres. Also, Amtel products are sold through “AV-TO” network, member of Group “Amtel-Vrederstein”. The company “AV-TO” is one of the largest retail networks is Russia engaged in the sale of tyres, disks, oils, parts, etc.

AMTEL tyres are sold not only on the Russian market but they are also supplied to CIS and Western European countries.

The financial crisis had slight negative effect on “Amtel” company. “Our company faced financial difficulties three years ago when the crisis did not impede the automotive and tyre industry. Strange as it might seem, but the crisis even helped us to a certain extent: we accumulated experience of work under the crisis circumstances which we can now share with other companies that suffer from different difficulties” – told in the company.

In the crisis year of 2009, the development of commodity distribution network and corporate restructurings became high-priority lines of activities. A new Trade house with affiliates in 11 biggest Russian cities with good logistics network and with intermediate and operational stores located in the key regions was set out on the basis of the company “Megashina” that specialized in the distribution of automotive tyres. The headquarters of the Trade house is situated in Moscow. The manufacturer specifies that “the sale of brand “Amtel” products became the task of utmost importance for the new Trade house, that made it possible to more precisely control the sales in the distribution network and ensure the interests of all market participants”.

Representatives of the company think that it is necessary to render support to tyre sellers during the crisis. That is why, now the marketing activity of the company “Amtel” is aimed not only to the image component of the brand but also advertisement support of the clients that work with the brands of the company.

To promote its tyre brands, “Amtel” implements new social-oriented advertisement campaign under the motto “Drive your car without risk” (“Vodi bez riska”). It was supported not only by ordinary car owners but also by representatives of auto-racing. As for the plans for 2010, according to the manufacturer’s forecasts, the company should increase its market share by 5% and account for 20% of the Russian tyre market this year. “The situation of on the tyre market started to improve at the beginning of this year and this gives us an opportunity to look into the future with optimism. In 2010, we are going to release a new tyre in the range of “Amtel” products. Also, we would like to enter the market of production line assembly and currently we are holding negotiations with auto makers concerning new contracts. We have already achieved some positive results on this line” – say the representatives of the company.

JSC “Nizhnekamskshina”

“Nizhnekamskshina”, currently a member of “TATNeft”, is one of the famous Russian tyre manufacturers: it has produced tyres for almost four decades.

The plants of the company manufacture products for both in-line assembly and for the secondary market. LLC “Trading House “KAMA”, the general distribution company of Nizhnekamskshina products, supervises the sales of tyres. The range of tyres that are sold under trade names KAMA and KAMA-EURO via the trading house, cover almost the whole automotive market of Russia. The product portfolio of the company includes 30 dimension types of car tyres, 8 dimension types of light-duty tyres and 13 dimension types of truck tyres. Also, the company offers 12 dimension types of tyres for agricultural machinery and 2 dimension types of industrial tyres.

In 2008, the company sold 9,3m tyres of KAMA and KAMA-EURO trademarks. In 2009, the sales declined by 16,3% due to the economic downturn: 7,7m units were sold in Russia. In 2010, the company plans to increase its sales on the Russian market by approximately 3-4%.

In 2008-2009, the manufacturer extended the line-ups of the most modern car tyres KAMA-EURO 129, 519 and light-duty tyres КАМА-EURO LCV 131, 520.

Of course the launch in December 2009 of a plant engaged in the manufacture of SMC tyres was the most important event for the company. The new enterprise is situated in Nizhnekamsk. The annual output of the plant can reach 1,2m units and the total cost of the projects exceeded $500m. After the new enterprise had been commissioned, “Nizhnekamskshina” created 900 jobs on the production and 1700 jobs in the adjoining industries.

During the economic downturn, some changes occurred in the activity of the company. The manufacturer started to use a flexible discount system for wholesale clients. Besides, the commodity distribution network, the warehousing system and the logistics on the whole were reorganized. The company pays much attention to the sales system on the secondary market especially to the relationship management with ultimate consumers.

In the future, “Nizhnekamskshina” plans to establish an all-Russia network of sales-and-service centres to be engaged in the sales and maintenance of KAMA and KAMA-EURO tyres. It is expected that upon the implementation of this project, KAMA and KAMA-EURO tyres can be purchased, repaired and sell for scrap almost in any place in Russia. “This is a very big step to meet the consumer’s needs, to the European approach to clients and a large contribution to the ecological security of this country” – say the representatives of the company.

JSC “Altai Tyre Plant”

Altai Tyre Plant is one of the largest Russian tyre manufacturers. It was set out in 2004 on the basis of Barnaul Tyre Plant which had produced tyres for different vehicles for almost 35 years.

At present, range of products of the company is made up of about 70 models of tyres: for light-duty trucks, trucks, buses, cars, agricultural machinery, etc.

Recently, the plant has started to develop rapidly: All equipment was updated, domestic brand Forward was placed on the market. Also, the company started to pay special attention to the segment of car tyres.

During the past few years, the manufacturer is actively upgrading the range of products in all segments of the tyres produced. For example, at the beginning of 2007, Altai Tyre Plant launched the manufacture of a new dimension type of agricultural tyres 5.00-10 of model В-19А. In spring of the same year, one more model was offered to consumers: sport all-season tyres Forward Professional 156 for light-duty trucks. In June-July of 2007, the manufacture of models F-121 and F-124 with winter tread for VAZ-2104-11 was launched. Soon after it, one more new model for VAZ cars was offered – winter tyres Forward Arctic 710. In September 2007, the company announced the launch of a new tyre for light-duty vehicles: Forward Professional И-502 that is designed for VAZ vehicles and their modifications. In October 2007, another new tyre Forward AC-8 of 9.00-16 dimension type for trailers for agricultural machinery was placed on the market.

In March 2008, the manufacturer released new truck tyre Forward Traction I-P184 of dimension type 1220х400-533 with controllable pressure. The model possesses very high roadhold properties and is designed for AWD vehicles of the family KAMAZ -4310, -43015 and NefAZ-4510 with wheel arrangement 6x6. The tyre can resist loads up to 2668 kilogram-force when being operated in all road conditions under the air temperature from + 550С to - 450С.

The manufacturer offered two new tyres by the summer 2008: car tyres Forward Dinamic 720 and Forward Dinamic 730. These models have increased road holding including that on wet roads which was achieved due to a special arrangement of blocks and grooves. The tyres can be operated on VAZ 2104-2107, VAZ -211, VAZ -2111 vehicles and on IZH-2126 “Oda” and also on foreign-made cars of the same class. Both of the models are high-speed and the maximum allowed speed is 190 km/h.

In 2008, the company launched the manufacture of a tyre that is positioned in an absolutely new segment for the enterprise, namely in the segment of construction and road-building machinery. This is model Forward Industrial 140.

In 2009, the company continued upgrading the range of products. At the beginning of the past year, the development of a manufacturing process of Forward Traction ID-P 284 tyre was started at Altai Tyre Plant. This tyre was designed for Ural vehicles. Before 2009, the company had produced OI-25 for this kind of vehicles. To adjust the manufacture of the new tyre, there was used new equipment, particularly machine ASB -1550 for the assembly of right-size pocket band that is equipped with a control system governed by the programmable controller A1 made by Siemens.

And that is not the end of the modernization process. In August 2009, the company announced the prospective launch of balancing machine BS-07Sh. The purchase of this equipment was conditioned by the growing demand for radial tyres of 13 and 16 inches. The installation of this machine should load the equipment and also enhance the quality of the tyres produced.

The launch of the second brand was one of the most remarkable events for the company in 2009. Along with Forward tyres that are manufactured by means of modern equipment with the use of advanced technologies, a new tyre under the make “Altaishina” emerged in the line-up of the company: this is traditional simple, by a reliable tyre.

Speaking about the sales policy of the enterprise, it is necessary to note that a large part (about 75%) of all tyres manufactured is sold on the internal market. The remaining 25% are exported to Kazakhstan, Uzbekistan, Turkmenistan, Kirgizia, Ukraine, etc. and also in the countries of far abroad.

Of course, the crisis that erupted in 2008 had a certain effect on the activity of the company. At the same time, it managed to avoid such a deep decline that was observed in the industry on the whole. According to the manufacturer’s data, the growth of Altai Tyre Plant in the first half-year of 2008 comprised 135,3%. In 2009, the crisis did not prevent the company from consolidating its positions on the market. According to the manufacturer’s data, “the share of Altai Tyre Plant on the domestic market increased from 5,2 to 5,9% in 2009 compared to 2008. The plant increased its share from 7,8 to 8,5% in the truck tyre segment and ranked third by the output of tyres in this country. The share of Altai Tyre Plant in the light-duty tyre sector increased from 9,8 to 11,2% and as for the segments of agricultural and car tyres, the company is consolidating its positions there as well: the share of agricultural tyres increased from 17,9 to 22,8% and the share of car tyres – from 2,1 to 2,5%.

As for the plans, in 2010 the company will mainly focus on the manufacture of truck tyres. In 2010, Altai Tyre Plant will offer 8 models of tyres for heavy-duty trucks, light-duty trucks and also for buses. Five most called-for dimension types were chosen for the manufacture of the new models, namely 8.25R20, 11.00R20, 12.00 R20, 175R16С and 185/75R16С.

The majority of the new tyres (6 models) will be manufactured under the brand name Forward and the remaining models will represent make “Altaishina”.

The main part of Forward tyres (50%) is designed for KAMAZ vehicles. The manufacture of brand-new tyre Forward Traction 168 and a new modification of tyre Forward Traction 310 that has been manufactured for already 3 years and is in high demand now will be launched for KAMAZ trucks. Now, the model Forward Traction 310 will be represented in 11.00R20 и 12.00R20 dimension types.

Another new model – universal Forward Traction 75 of 12.00R20 dimension type represents a tubed tyre with unified tread pattern (“crow’s foot”). This model is designed for MAZ, KrAZ vehicles and compatible trailers and also for Iveco 330-30 АNW dumpers.

There are two more developments: all-season tyres Forward Professional 462 and Forward Professional 170 of 175R16C dimension type. These models were designed for “GAZelle” vehicles.

Altaishina 111 and Altaishina 79 of 8.25R20 dimension type will be manufactured under the trademark “Altaishina”. Both of the models have high brake roadhold properties which effect is achieved by the tread pattern: the model Altaishina 111 has the tread pattern with zigzag cross grooves. The necessary effect in Altaishina 79 is achieved by “broken” longitudinal abd cross grooves. The said tyres may be operated on GAZ-53, KAVZ, GAZ-4301 vehicles and PAZ-3205 buses.

It is expected that the first batches of new tyres will be released by summer of this year and it will go on sale closer to the end of 2010.

Despite the crisis, Altai Tyre Plant plans to continue implementing a large-scale development strategy. In prospect, the manufacturer intends to considerably increase the output of called-for truck tyre modes, particularly, of modern radial tyres Forward Traction 310 (10.00R20), Forward Traction 281 (10.00R20) and Forward Traction 1260 (425/85R21).

Besides, the line-up for SUV tyres will be extended thanks to Forward Safari 500 of 31.10, 50-15 LT dimension type.

Also, the double increase in the output of tyre FT ID-P284 Altaishina (1200.500-508) is expected. This model is in high demand now due to its high cross-country ability in severe road conditions. This model is designed for Ural 4320/ 43206 (chassis), Ural -43204 (timber truck), Ural -5557 (dumper) and Ural -3255 (crew bus).

It is planned to launch the full-scale manufacture of a large-size agricultural tyre КФ-97 Altaishina of 16,5/70-18 dimension type. The unified-tread tyre was designed for tractor trailers 1PTS-9 and PTS-12 with the payload from 9 to 12 tonns.

By the way, the development of the manufacture of large-size tyres is the company’s line of activity of the highest priority. In addition to the model KF-97 Altaishina, in 2010, the company will release 28,1-26 FD-12D, Altaishina for tractors K-700.

Besides, the company plans to develop the manufacture of extra-large-size and SMC tyres: Altai Tyre Plant has already opened negotiations with foreign companies concerning the set-out of a plant to be engaged in the manufacture of SMC tyres.

Along with the development of new projects, it is planned to enhance the manufacturing efficiency. Particularly it concerns the modernization of rubber-mixing process that has become one of the strategic goals of Altai Tyre Plant for 2010. At the end of March, the company announced the pre-commissioning operations on the festoon-type plant UFT-3600. This plant performs cooling and sheeting of the rubber by interminable strip: in the further technological process this makes it possible to get rubber mixtures that are more homogeneous from the point of view of physical and mechanical properties. There have already been launched two such plants at the enterprise. The launch of the third one is expected to increase the output of rubber mixtures with high quality properties.

CJSC “Matador-Omskshina”

CJSC “Matador Omskshina” has become one of the first Russian joint ventures.

LLC “Continental Matador Rubber”, Slovakian subdivision of Continental, and JSC “SIBUR – Russian Tyres” became the co-owners of the company. The manufacture of tyres is the main line of activity of the company.

At present, “Matador-Omskshina” manufactures car and light-duty tyres of 13-16 bore diameters. The range of products of the company includes more than 150 different dimension types and models of tyres.

The manufacturer is constantly upgrading the line-up of products. The year of 2007 was quite productive from the point of view of the extension of the range of products: the company produced new tyres under trademarks “Matador” and “Cordiant”, namely МРS 310, Cordiant OFF-ROAD and Cordiant BUSINESS. Also, in 2007, 19 new dimension types for car, light-duty and SUV tyres were certified. In 2008, the manufacture of new models under trademarks “Matador” and “Cordiant was launched: Sport 2 PS-501, МР 76. In 2009 the range of the products manufactured was completed with a new tyre model Cordiant Polar 2.

“Matador-Omskshina” is carrying out activities which aim to modernize equipment. Particularly, in 2007, 18 hydraulic presses and 2 assembly machines were launched at the plant and in 2008 a line “Triplex” was commissioned. In 2009 the modernization of the equipment continued.

LLC “Continental Tyres RUS” and “SIBUR – Russian Tyres” are engaged in the sale and promotion of the products manufactureв by “Matador-Omskshina”.

In the new economic conditions, the company developed and introduces a cost management programme. Of course, the crisis could not but affect the company: “The past year can hardly be called easy. A decline in the number of orders in the first half of the past year brought about a decrease in the output. In the new state of affairs, it was necessary to find new innovative solutions and reconsider plans for the future as soon as possible. The crisis forced everyone to undergo a serious training, so to speak but now the company operates in a normal regime and plans further development”.

As for the prospects, new equipment will continue to be integrated in the enterprise in the future. Also, the company will increase the output and extend the range of tyres manufactured.

MICHELIN

Company Michelin is one of the largest tyre manufacturers. In Russia, the company offers a wide range of car and light-duty tyres under trademarks MICHELIN, BFGoodrich, Kleber and Tigar – these are summer and winter tyres for cars, SUVs, sport cars, mini vans and light-duty trucks. In the segment of winter tyres, the company offers studded as well as non-studded tyres for severe winter conditions, and also non-studded to be operated during mild winters. At present, the range of products manufactures by the company includes about 60 models of tyres and more than 1000 dimension types.

The company manufactures MICHELIN and Kormoran tyres for commercial vehicles. Besides truck tyres, MICHElIN company sells tyres for large-size, industrial vehicles and also agricultural machinery in Russia and CIS countries.

Michelin was the first foreign manufacturer that decided to open an enterprise to be engaged in the manufacture of car tyres in Russia. The plant “Michelin” situated in Davydovo, Moscow region, was launched in 2004. As of today, the production capacity of the plant is 1,5-2m units annually. The Russian plant Michelin manufactures summer tyres MICHELIN Energy, MICHELIN Energy Saver, and also winter tyres MICHELIN X-Ice North, MICHELIN X-Ice North 2, MICHELIN X-Ice 2, BFGoodrich g-Force stud, Kleber Kapnor 5. The bore diameter of the models manufactured is 13-16 inches.

Recently, a very important event for the company occurred: at the end of 2009, the Group “Michelin” made a strategic decision to create a new geographic zone in the business structure, namely the Western-European zone. It includes 12 states: Russia, Ukraine, Republic of Belarus, Georgia, Armenia, Azerbaijan, Kazakhstan, Tadzhikistan, Turkmenistan, Uzbekistan and Kirgizia. This zone was singled out for deeper market research and for the consolidation of positions in these countries. “The new structure will help us to be more flexible and adapted to specific needs of ultimate consumers in Russia and CIS in all lines of activities, including commerce, distribution, marketing and PR activities. We will be more flexible whet making decisions” – say in the company.

It will be recalled that earlier, Russia, Ukraine, Belarus, Kzakhstan, Georgia and Moldavia were members of the European geographic zone. Since 2009, Michelin in Russia and CIS has become subordinate directly to the Managing partners of the Group “Michelin”. Such a decision testifies to the fact that Russia and CIS countries are key lines of development for Michelin Group.

In the crisis circumstances, Michelin company had to adjust its activities: for example, the manufacture that is situated in Moscow region had to be adjusted to the new market conditions. At the same time, as the representatives of the company put it, “under the present economic situation, our employees remained the main value. We did not make any job cuts, nor did we reduce salaries and wages, and thus we preserved the employment benefits. Our goal was to minimize negative consequences of the crisis for out employees and also preserve financial stability so as to continue the business development in Russia in the future. Those opportunities that resulted from the adjustment of the manufacture, were used to train out employees to get them involved in other projects. So, we invested in our future”.

In spite of the crisis, the past year was full of events for Michelin company in Russia and CIS. In 2009, the manufacturer presented two key models in the segment of car tyres on the Russian market. This first one is a summer tyre MICHELIN Energy Saver that combines not only optimum safety properties, long life period but also fuel saving; the second one is the studded tyre for severe winters - MICHELIN X-Ice North 2. Also, summer and winter tyres TIGAR that emerged in Russia in 2009 for the first time, went on sale.

In 2008-2009 the company actively developed the retail network of professional car and truck tyre centres TYREPLUS. In 2009, the 100th car tyre center situated in Samara was opened. As of today, the retail network of Michelin in Russia and CIS includes more than 100 car tyre centres and more than 40 truck tyre centres TYREPLUS.

In the near future, the company will develop its business in the Western-European zone and at the same time will be increasing its share in CIS countries. At the beginning of 2010, a commercial agency “Michelin” to be engaged in the research of tyre market was opened in Ukraine.

Besides, Michelin will continue developing the manufacture in Russia by increasing the output of the plant situated in Davydovo. It is also planned to extend the retail network TYREPLUS in the segment of car truck tyres.

Nokian Tyres

Nokian Tyres is one of the key foreign players on the world market. Its products have long been known in Russia. The manufacturer offers a wide range of products on the Russian market.

In spite of the crisis the company offered a whole number of new models to consumers. Particularly, in February 2009, the company announced its plan to place on the market a new winter studded tyre Nokian Hakkapeliitta 7 and in Juanuary 2010, a new winter tyre for SUVs Nokian Hakkapeliitta 7 SUV was released. Due to the innovations used one of which is connected with the use of an air claw (Air Claw Technology), Nokian Hakkapeliitta 7 SUV overtook the former leader of independent tests - Nokian Hakkapeliitta 5 by properties. “Before the stud, in the tread block, there are two drop-shaped holes that serve as air springs on order to reduce noise; they also lessen the shock and reduce vibration during the contact with road surface. The air springs not only reduce the noise from the studded tyres but also extend the life of studs due to the reduction of vibration and preserve the quality of the road surface” – say the representatives of the company. The new tyre will go on sale in all key markets of Nokian Tyres including Russia. Also, this tyre is presented in Ukraine, Belarus and Kazakhstan and, of course, in Scandinavian countries. The tyre was placed on the market at the beginning of season 2009-2010.

In May 2009, the manufacturer announced the release of one more new model: truck tyre Nokian Hakkapeliitta Truck F designed specially for buses and trucks. Before this, in 2008, the company had offered model Nokian Hakkapeliitta Truck E. The model of 2009 is designed for the operation in the severest winter and road conditions. Good operational properties are achived thanks to the use of modern technologies: for example, spiral sipe system that makes the road hold perfect. Also, the tyre Nokian Hakkapeliitta Truck F was designed specially for severe Russian conditions.

In September 2009, the company offered to Russian consumers an off-road tyre Nokian Vatiiva M/T that had been earlier available to the consumers of the North America only. The tyre Nokian Vatiiva M/T was designed for light-duty trucks and off-road vehicles. The optimum operation of the vehicle is achieved due to gear-type humps on the shoulder of the tyre, aggressive tread pattern and wave-type lamelling.

In autumn of 2009, Nokian Tyres made an additional offer to consumers and released wheel disks Vianor for those who like tuning. Disks Vianor are meant to be used in difficult conditions of Russian roads. The new disks are made of primary aluminum of premium make that is supplied by Dubai Aluminium Company. The disks are manufactured at the plant Wanfeng Auto Wheel Co.Ltd situated in China that specializes in the manufacture of light-alloy wheels. The products are sold via a network of tyre centres Vianot that is one of the largest networks in Russia and Scandinavia and is owned by Nokian Tyres. Vianor disks became the first product in the project Private Label that is connected with the sales of products under domestic brand.

At the beginning of 2010, the manufacturer announced the release of some more new products to go on sale on the Russian market – this time sport tyres Nokian Hakka Z. The range of products extended due to seven new dimension types of sport tyres Nokian Hakka Z that have good road holding properties on wet surfaces. The full range of products of Nokian Hakka Z represented in Russia includes 34 dimension types now.

In the future, one more model is going to be released: in march 2010, Nokian Tyres announced the end of the test of a new summer tyre prototype. The rolling resistance of the prototype that has been designed with the use of advanced technologies, turned out to be 63% less than that of the premium summer tyre. “We are now actively developing new materials for the tyre manufacture. In the near future we will use new-generation silica and steel-cord constructions since they cause less heat during the deformation and, thereby, reduce the rolling resistance” – says Teppo Houvia, R&D Director at Nokian Tyres.

As for the result of 2009, in the past year, the sales of Nokian Tyres in Russia and CIS countries were, in terms of money, €172,1m: this is 55% less than the result of 2008. Such a decline was mainly connected with the decrease in the demand that was observed first of all on the Russian market. In Russia, in 2009, the sales volume in terms of money made a total €116,7m that is 63% less than the result of 2008. The sales in CIS, except for Russia, in 2009 made €55,4m: almost 24% less than in 2008.

The presence of stock resources and lack of funds of the distributing companies also contributed to the decline in the sales in 2009. The manufacturer also connects the shrinkage of the market share with the shift of consumer demand from expensive to cheaper brands. At the same time, as the representatives of the company put it “Nokian Tyres preserved leading positions in segment A”.

The manufacturer pays much attention to the development of its plant in Vsevolozhsk, Leningrad region, that was newly built and was commissioned in September 2005. The Russian affiliate of Nokian Tyres employs 630 people. The Vsevolozhsk plant specializes in the manufacture of winter and summer tyres for cars and SUVs: line-ups Nokian Hakkapeliitta, Nokian Hakka and Nordman. The plant has modern and high-tech equipment and machinery that makes it possible to achieve a high automation level. Despite the crisis, some additional equipment was installed at the enterprise: particularly, some machinery in the workshop of rubber mixing were installed. Also, a new line of finished-product storage area was commissioned in 2009.  At the same time, the crisis affected both the production process and the sales policy of the company. In the new economic conditions, some orders from the Managing plant located in Finland were transferred to Russia. At present, 7 production lines are in operation in Vsevolozhsk, and in the future, the company may further increase the production capacities and open three more production lines. In case such plans are implemented, the annual output of the enterprise will reach ten million tyres.

Tyres manufactured in Vsevolozhsk are sold both in Russia and in Ukraine and Kazakhstan. Besides, the products of the plant are exported to the countries of Central and Western Europe and also to Scandinavia. On the whole, the products are supplies to 20 states. It is necessary to note that due to the decline in the demand in Russia, in 2009 a large part of the products manufactured at the plant was exported.

Despite the crisis. Nokian Tyres extended its distribution network in Russia and CIS countries thanks to new agreements and also thanks to the extension of the Vianor tyre centre network. Particularly, in the last quarter of 2009, 28 new centres were opened. As of the end of 2009, the Vianor network was represented by 353 tyre centres in Russia and CIS countries. In 2009, Nokian Tyres continued to carry out activities worked out within the adopted investment policy. The majority of all investments of the company (59% or, in terms of money, €51,2m) was aimed at the completion of projects on the plant development in Russia, that have been started in 2008.

Continental

The products of Continental company are well known in the world market. In addition to the tyre production that is supervised by the Rubber Group, the company develops the manufacture of safety systems, chassis, transmissions, internal electronic equipment that is supervised by another company’s subdivision – the Automotive Group. In 2009 the Rubber Group sales volume amounted to €8.1bn, the major part of which – €4.7bn – consisted of the car and light-duty truck tyres.

The company’s strong positions in the European assembly market help the manufacturer to increase the ultimate consumers’ demand for tyres also in Russia where Continental offers the renewed tyre range.

Among summer tyres that are currently in demand we can mention ContiEcoContact 3, ContiPremiumContact 2, ContiCrossContact UHP; among winter tyres there are studded ContiWinterViking 2, Conti4x4IceContact and Gislaved NordFrost 5. The non-studded (friction) ContiVikingContact 5 tyres are also popular with the Russian car owners.

In 2008-2009 the company offered the Russian consumers a few new products – ContiVikingContact 5, ContiWinterContact TS 830P Barum Bravuris 2, Barum Bravuris-4x4 tyres and a few other models. The innovations have the improved performance characteristics.

In 2010 the company is presenting the new summer and winter products which include studded ContiIceContact tyres for cars, minivans and SUVs as well as summer ContiSportContact 5P tyres for sports and souped-up cars.

In 2008-2009 the company was actively promoting its products with the use of promotion actions and different activities for dealers. Numerous test drives were conducted together with the car manufacturers (for example, Volskwagen Off-Road, Audi-Quattro etc.) and new products presentations were organized.

The financial crisis spurred the development and implementation of measures aimed at improving the company’s competitive capacity. In the past years, Continental has been constantly aspiring to support its partners in terms of the successful sales of products. The manufacturer is sticking to this policy today as well. The company representatives say that “the general situation in our tyre subdivision shows that even during the crisis our market positions are quite stable compared to those of competitors, and we remain a reliable partner for our customers. It means that we offer good servicing to our partners and ultimate consumers and maintain the product quality at a high level. Each client will be able to choose optimal products among our Continental, Gislaved, Barum, Uniroyal and Matador brands”.

Despite the crisis the company is not going to abandon the projected plans. Continental still considers Russia to be the strategic market. The manufacturer admits that “like all market participants, the company had to struggle with the sales decline in 2009. It is hard especially when the previous years were marked by the double growth rates”.

Meanwhile, Continental intends to maintain quite a big market share. Investments in the Russian market are evaluated as long-term that is why the company is sure that the Russian tyre market growth will recommence but the rates will be slower than before, though.

Goodyear

Goodyear is one of the largest tyre manufacturers in the world. Goodyear has been actively renewing the product range and announcing new models that can be checked out by the Russian consumers.

The crisis has not prevented the manufacturer from presenting the new products. Particularly in August 2009 the manufacturer announced a new model – the summer high speed Goodyear EfficientGrip tyre – created with the use of the FuelSaving Technology. Goodyear EfficientGrip tyre is 10 % lighter than its predecessor. A few technological developments directly affecting the tyre rolling resistance were used during the manufacture of it: lighter carcass reducing the tyre weight, a patented undertread layer (Cool-Cushion Layer) reducing heat release and an improved composition of the rubber mixture. The use of all these elements in the production process as well as the application of innovative technologies have lead to the expected result – the reduction of the energy that is necessary for the tyre operation. Furthermore, it makes it possible to reduce the fuel consumption and the carbon dioxide emissions. Moreover, the tyre secures better mileage and a good wet performance. The new model has already been put on the Russian market.

In February 2010 Goodyear announced the test results for the non-studded winter UltraGrip Ice+ tyre created for confident driving in changeable and severe winter conditions. In the development and production of the UltraGrip Ice+ model they use the ActiveGrip technology which combines the plied-up tread and the innovative composite lamels that help to achieve optimum performance on the ice and snow-covered roads as well as on the dry or wet surfaces. Testing was performed by specialists of the international testing organization Test World which is located in 300 km beyond the Arctic Circle and has one of the most up-to-date testing centers in Europe that makes it possible to test tyres in conditions of polar winter. The test results confirmed the high performance of the tyre in different weather conditions. Now the Russian car owners are guaranteed the best grip with the road surface especially when it is covered with ice.

Besides, in February 2010, Goodyear announced the launch of the new car tyre brand Sava in the Russian market. The Sava company – one of the biggest plants in Slovenia – is a 100 % property of the Goodyear corporation. Tyres produced at this Slovenian plant are supplied to the assembly lines of many world manufacturers of cars and trucks including Audi, Mercedes, Opel, Ford, Renault, Nissan, Mitsubishi, Toyota, Peugeot, Fiat, MAN and Iveco.

The Sava brand is already present in the Russian market in the truck tyre segment. Now in Russia there will be car tyres positioned in the medium price category as well.

The main model of the Sava summer line is the high speed Intensa HP tyre. It is remarkable for a new construction combined with an optimized shape of the tread blocks and the innovation rubber mixture on the base of silica and polymer composition that secures a long life cycle, low rolling resistance and a good wet performance.

In addition to the Intensa HP model in summer the Russian market will also see the standard Sava Perfecta tyre, the high speed Sava Intensa UHP, the Sava Intensa SUV and a few models of the light-duty truck tyres.

Bridgestone

Bridgestone, the leader of the world ratings, considers the Russian market to be one of the most promising markets. Particularly Yoshiaki Hiraishi, Director CIS LLC General of Bridgestone, is sure that the company will have a success in Russia.

The manufacturer has been constantly renewing the range of tyres presented in Russia. For winter 2009-2010 the company offered the non-studded Blizzak WS-60, Blizzak DM-V1 and the studded Ice Cruiser 5000. At the same time the Blizzak DM-V1 model was quite in demand. For winter 2010-2011 the company will offer two new models.

For summer season 2010 the Russian consumers will be introduced the B250 tyre which meets high technical and ecologic requirements. The B250 model is marked as “eco-product” and meets the environmental protection requirements accepted in the Bridgestone company. The B250 can be operated practically on any road paving including the rough roads.

JSC “Belshina”

OJSC Belshina is one of the largest tyre manufacturers not only in the Belarusian market. The Belshina products are well-known also in Russia which remains one of the strategic directions for the enterprise.

At present, the company production capacity is concentrated on several areas. Large-size tires plant produces tyres for heavy-duty dump trucks, road construction machinery, lifting transport vehicles, tractors, trailers and agricultural machinery. Super large-size tires works manufactures tyres for heavy-duty dump trucks operating in mining quarries. Car and truck tires plant manufactures tyres for trucks, buses, agricultural machinery as well as for cars like VAZ, Moscvitch, Volga and practically all foreign-made cars and mini trucks. Besides, the structure of JSC Belshina includes JSC Shinoremont that specializes in restoring worn-out automobile tyres, mechanical plant that manufactures tyre production tooling and a few other subdivisions.

The major part of the plant output – about 90 % – consists of the radial tyres. The range of these tyres is represented in several segments: for heavy-duty and super heavy-duty vehicles, for trucks and buses, for cars and light-duty trucks, for building, road and lifting transport vehicles.

Over 20 tyre models are manufactured for heavy-duty and super heavy-duty vehicles. Approximately 50 % of this range consists of the products for mine dump trucks. The rest comprises tyres for the BelAZ dump trucks and their foreign counterparts.

Over 40 tyre models are manufactured for trucks and buses. Meanwhile, the range of truck tyres can be used not only in the machinery produced in Belorussia (MAZ) but also in the KrAZ, KAMAZ vehicles and their foreign counterparts as well as in various road building machines, trailers and semitrailers etc. The range of bus tyres includes products for the domestic and foreign buses of different classes.

The segment of car and light truck tyres is represented by over 40 models. The tyres can be used in vehicles of different Russian brands including GAZ, VAZ, UAZ, Moscvitch etc. In addition to it the manufacturer has developed the production of tyres for sports cars.

Over 40 kinds of tyres have been designed especially for road building machinery and lifting transport vehicles. The range of tyres for this segment includes products not only for the road construction machines but also for the cross-country vehicle, road trains, fork lift trucks, underground loading-and-unloading machines etc.

The manufacturer has been actively launching new and upgraded models in the market. Despite the crisis 2009 has become one of the most productive years concerning the range renewal. Already last February the company announced the innovations of 2009. One of them was the truck tubeless Bel-159 235/75R17.5 tyre for the MAZ buses and trucks. This radial tyre with a steel wire cord in the carcass and the breaker has a universal tread pattern. It can carry the load of up to 1900 kg. Commercial vehicles equipped with such tyres can attain the maximum speed of 130 km/h.

In February 2009 the company also announced the testing beginning for the new car tyre for the VAZ-2171 and VAZ-2172 and the foreign cars of the same class. This tubeless radial Bel-157 185/65R14 tyre has a steel wire cord in the breaker. The increased grip and traction as well as the reduced risk of hydroplaning are provided mainly by the highway pattern with pads or ribs separated by grooves. The tyre can carry the load of up to 530 kg. This is a high speed model: the car equipped with such tyres can attain the maximum speed of up to 210 km/h. The model testing had finished by autumn 2009 and then the innovation came into the market.

Last May the manufacturer announced the development of the new tubeless Bel-168 245/70R19.5 tyre. Having the road tread pattern the tyre is designed for city buses like the MAZ-206 while the Bel-178 295/80R22.5 tyre with the universal tread pattern is for the MAZ trucks.

In August 2009 the company announced the testing completion for another innovation – the light-duty Bel-171 195/70R15C tyre. This tubeless radial tyre has a steel wire cord in the breaker and the all-season tread pattern which helps to achieve the better grip and traction, stability and steerability of the car in any weather conditions. This model can be used in light-duty trucks and minibuses of different brands including the foreign ones.

In October 2009 Belshina announced the innovation in the all steel tyre segment – the truck tubeless Bel-159 235/75R17.5 tyre with the universal tread pattern. This tyre is remarkable for the reinforced breaker construction and the deep tread pattern increasing the tyre life. This tyre is designed to be used in the MAZ trucks and buses.

Last November the company also announced the completion of documents for the serial production of the new truck all steel Bel-146 385/65R22.5 tyre. The innovation has the road tread pattern and is designed for the MAZ trailers. The Bel-146 model is remarkable for the increased depth and the advanced form of the tread pattern which its predecessor – the Bel-88 385/65R22.5 tyre – did not have. These tread changes result in the reduced rolling resistance, the increased speed endurance and the prolonged tyre operation life.

The acceptance testing of the new car high speed Bel-177 185/65R15 and Bel-167 195/65R15 tyres was finished in the late 2009. The both models have the road tread pattern.

In the early 2010 the range renewal was continued. The serial production of the radial Bel-171 195/70R15C tyre for light-duty trucks and the radial Bel-129 480/70R30 tyre for the Belarus-2522 tractor was launched during the first two months of this year.

Moreover, in March 2010 the acceptance testing was performed for the all steel tyres – the Bel-202 and Bel-212 24,OOR35 – for mine dump trucks with the carrying capacity of 65-70 tons. Basing on the needs of RUP MAZ and KAMAZ JSC the plant also manufactured the tyre prototypes – the Bel-310 11,OOR20 for the KAMAZ dump trucks and the all steel Bel-178 295/80R22.5 for the MAZ trucks – that had passed the pretesting.

In 2010, the manufacturer intends to produce a few prototypes including the Bel-195 265/70R19.5 tyre for the MAZ-232 intercity buses and the Bel-196 235/75R17.5 tyre for the MAZ trailers. The both models have the road tread pattern.

As for the distribution system, in Belarus the JSC Belshina tyres are realized via the proper sales network including one company store in Bobruisk, Mogilev region, two showrooms in Minsk and 19 regional warehouses in all regions of the Belarus Republic.

In Russia the JSC Belshina output is realized by the two-channel sales system: via the proper distribution network and with the help of the Belneftekhim concern trade organizations. In the Russian Federation territory there are 8 trade houses owned by JSC Belshina and located in Nizhny Novgorod, Krasnodar, Petrozavodsk, Kursk, Smolensk, Irkutsk, Tyumen and Chelyabinsk. In Moscow, Saint Petersburg, Rostov-on-Don and Novokuznetsk there are trade organizations owned by Belneftekhim-ROS Ltd. Despite the crisis the manufacturer has been actively expanding its presence in the Russian market. Over the 8 months of 2009 the sales representatives – members of the JSC Belshina distribution network in Russia – opened over 60 regional warehouses.

The output realization in the Ukraine and Kazakhstan is organized by the same two-channel system as in Russia. In Ukraine JSC Belshina is represented by two organizations located in Kiev and Donetsk. In Kazakhstan, there is a trade house located Ust-Kamenogorsk.

In addition to the CIS the JSC Belshina trade houses are also opened in the far-abroad countries, particularly in Lithuania (Vilnius), South Africa, Ghana and Singapore. In June 2009 the manufacturer announced opening of the official representative office in Canada (Vancouver). JSC Belshina representatives also work in many other counties including the USA, New Zealand, Brazil, India, Belgium, Bulgaria, Armenia and Azerbaijan.

JSC Belshina pays much attention to the improvement of the production processes and the development of new lines of activities. Various programmess have been developed at the plant for this reason. According to the program of prospective development up to 2010, a few investment projects have been realized in the company. Particularly at Car and truck tires works new vulcanization presses were installed in vulcanization shop No 1. Vulcanization shop No 2 was modernized at the same plant. And Large-size tires works launched the production of agricultural tyres while Super large-size tires works launched the production of all steel radial tyres for mine dump trucks.

In 2010-2011 the plant reequipment is planned to manufacture car tyres, to create the production of the all steel 16.00R20 and 445/ 65R22.5 tyres and to install the assembly unit.

In the future there is a chance to realize the investment projects connected with the reequipment of the truck all steel tyres production at Car and truck tires works and the reequipment of Large-size tires works. Moreover, the enterprise is interested in the production of the all steel radial tyres with the bore diameter of 57 inches.

In the early 2010 the manufacturer announced the development of the new activity direction that is not connected with the tyre business. In this case it concerns the production of bio diesel fuel, to make which there is a special shop at Super large-size tires works.

CJSC “Rosava”

Rosava located in Ukraine is the successor of Belaya Tserkov tyre factory which has been in production since 1972. The products manufactured CJSC Rosava is well known in the Russian market.

The enterprise manufactures over 150 tyre sizes for cars, light-duty trucks, trucks, minibuses, agricultural and other machinery. The plant production capacity amounts to 6 million units per year.

An important stage in the company business started a few years ago. Since 2006 the manufacturer has begun develop a new direction – the medium class tyres. Due to the modern production technologies these tyres are remarkable for the improved performance characteristics. In 2006-2007 the plant produced the SQ-201 model with the road directional tread pattern and the winter tyres generation of the WQ 101,102,103 model. These products were designed with the use of the up-to-date software programs Pro/Engineer (USA) and Cascade (Russia). In the process of their production they used the advanced equipment: the new universal Berstorff tread-extruding unit and the Pirelli tyre building machines. New constructional materials were used for their production. Polyester cord and silica in tread formulation enhance performance characteristics of tyres.

Recently the manufacturer has presented several new models In September 2008 the CJSC Rosava large-size tyre plant produced 3 new models – the 10.075-15.3 F-274, 13.6R38 TR-07 and 21.3-24 IYAV-79U tyres. All of them are designed for the agricultural machinery.

In November 2008 the company announced the launch of the new winter LTW-301 tyre for commercial vehicles. It is the first commercial vehicle model with the winter directional tread pattern designed by the CJSC Rosava specialists. Due to the unique tread pattern this model is remarkable for a strong grip and can carry big loads.

CJSC Rosava pays special attention to the production processes modernization. Installation of the new Samsung equipment – 3 compressors, 3 cooling towers and 3 air dehumidifiers – had been finished by July 2008.

Ten 46 inch shaper-vulcanizers were also installed and brought into operation at the plant in 2008. The assembled equipment was manufactured by the German company Harburg Freudenberg which is known in most European countries as the manufacturer of the modern high-precision equipment for tyre plants.

In the late 2008 the company announced the purchase of new equipment for the medium class tyres production. It is a bead-making machine LIBEPAL manufactured by the Slovak company VIPO. The machine was purchased during the implementation of the investment programme on modernization of the equipment to organize production of the car and light-duty truck tyres with the bore diameter of 14-18 inches. The contract sum amounted to 951,930 thousand dollars.

According to the manufacturer’s data, the company completed the year 2009 with a positive financial result. The sales volume came to 3,074.6 thousand tyres last year. And the major part of the sales structure – 93 %, or 2,859.9 thousand units – belongs to the car and light-duty truck tyres. The truck tyre sector makes up 5.4 %, or 167.0 thousand units. And the rest 1.6 %, or 47.7 thousand units, is represented by the agricultural tyre segment.

The company representatives note, “The positive financial results were achieved also due to the shift of sales structure towards expensive products of higher quality – the medium segment tyres (WQ and SQ)”. In 2009, the sales of such tyres increased by 25 % in comparison with the year 2008.

As for the sales structure by countries, the company sells the major part of the products – about 50 % – in the Ukrainian market. The rest is supplied to the external markets. Particularly 12.7 % of the produced tyres is exported to Russia, 23.6 % – to the CIS countries, 10.8 % - to the far abroad countries.

The products of Rosava are known in over 50 states. In spring 2008, 65 thousand TM ROSAVA tyres were supplied to Egypt, and it has been one of the most significant events in terms of the position strengthening in the external market. The contract sum amounted to 1.5 million dollars. The considerable part of the output – 95 % – consisted of the SQ Aqualine tyres. Despite the crisis 2009 was quite a successful year for the company and brought tangible results of work in the external market. In 2009 the number of the countries where the WQ and SQ tyres are exported increased almost by 47 %. Now tyres of this segment – prospective for the manufacturer – are supplied to 22 states. Furthermore, in 2009 the company started supplying the whole product range to the USA, Syria, Great Britain, France, Libya and other countries.

JSC “Dneproshina”

JSC Dneproshina is one of the largest manufacturers in Ukraine and its products are known not only on the local market but also beyond it.

JSC Dneproshina supplies to the international market a wide range of tyres of a variety of sizes that includes more than 150 tyre models as well as 2 thousand units of formed and non-formed rubber technical goods.

The company produces tyres for cars, light-duty and heavy-duty vehicles, trucks and buses as well as for the agricultural, road building, mining machines, wheeled lifting transport vehicles, loaders and motorcycles.

In addition to the proper non-branded models the plant manufactures car tyres of the SATOYA brand. They are produced in conformance with the European technologies using the up-to-date equipment. The new tyres have passed the necessary test inspection performed by specialists of the Czech institute IGTT. The equipment installation started in 2006, and in 2008 the first batch of tyres was manufactured by this brand. The SATOYA tyres are produced in two variants. The SATOYA Pioneer model is designed for operation in summer, the SATOYA Samurai – in winter. These tyres are already available in the Russian market where the manufacturer’s interests are represented by Dneproshina Trade House. In addition to the Ukrainian and Russian markets, those of the West European countries are also important to the manufacturer.

Despite the crisis the manufacturer aspires to maintain its market positions due to the product range diversification and active work in the external markets. In May 2009, JSC Dneproshina manufactured the first production batch of the tubeless 385/ 65R22.5 DT-168 tyre. The new product is designed for trucks and trailers. This tyre can carry the load of up to 4.5 thousand kgf at the inflation pressure of 9.2 kgf/cm2. The innovation has the road tread pattern and can be operated in any climatic areas including severe winter conditions when the air temperature falls down to 45oC below zero.

In November 2009, the company started to supply to Russia the truck tyre 560/60R22.5 DT-182 hat has already established a reputation on the Ukrainian market. The tyre has the universal tread pattern and is designed for dump trucks and trailers. In November 2009, JSC Dneproshina also announced its intention to develop the production of car and agricultural tyres for the US market. For these purposes the plant is currently developing over 10 car tyre sizes and 7 agricultural tyre sizes of various bore diameters.

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