Continental Seeks New Markets
Posted on July 10, 2009
Filed Under Continental Tires
«Continental AG» Concern (Germany, Hannover) has acquired new facilities in order to make winter tires and strengthen its position in Russia and the Scandinavian countries.
Lothar Salokat, the representative of the board of directors of the group at the press conference on conclusion of a large-scale transactions between Continental AG and the largest Finnish manufacturer TIKKA Spikes Oy said: «The agreement, which was concluded with the TIKKA company, will allow us to continue to cooperate with other manufacturers of tires and reach, thanks to established opportunities, the new levels and increase sales of tires, including Russia».
The agreement with the TIKKA Group Oy company, which manufacturing facilities are located in Finland in Tikkakoski, Jyväskylä and Espoo, has been signed yet on the June 18, 2008. According to the contract, Continental AG company will also receive a complete package of shares in subsidiary TIKKA Group OOO «TIKKA», based in St. Petersburg. But declaring the transaction, which was already signed has become possible only in September 2008, after receiving permission from the Antimonopoly Committee.
According to experts, estimate sales of TIKKA Spikes OY (Finland) and OOO «Tikka» (Russia), numbering 120 employees, amounted to more than 15 million euros. Continental AG concern, a leading global manufacturer of tires and automotive components, with annual sales of around 30 billion euros after the purchase of the Finnish manufacturer will be able to expand its production capacity and increase the proportion of Continental tire brand in the Russian market.
Signing this agreement was quite essential for Continental company, as in the current circumstances while closing factories in Germany and France as the result of the global economy crisis, tire manufacturers seek to remedy their losses by all means. And as for Continental, the most preferable option is to enlarge their existing markets in the developing countries.
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