Russian petrochemical giant Sibur and Nizhnekamskshina, a Tatneft petrochemical subsidiary, are to merge their tire assets to create an industry leader with almost two-thirds of the Russian tire market, Vedomosti business daily said on Monday, quoting Sibur head Vadim Gurinov.
A Tatneft official confirmed the information, Vedomosti said.
In 2009, Sibur held 30 percent of the Russian tire market, while Nizhnekamskshina held 27 percent.
Renaissance Capital analyst Marina Alexeyenkova told the newspaper that it is easier for bigger tire companies to cope with raw materials price changes and compete with foreign tire makers.
Russian tire producers currently struggle to compete with foreign rivals in quality, Alexeyenkova said.
Nokian and Michelin have production facilities in Russia, while Japan's Yokohama plans to open a factory next year. Italy's Pirelli plans to open a tire production with Russian Technologies state corporation.
The merged firm will invest in new technologies and fight for the CIS, Eastern Europe, Middle East and Brazil markets, Gurinov said.
MOSCOW, August 23 (RIA Novosti)
