SIBUR-Russian Tyres Might Shut Down Ekaterinburg Plant
23.09.2009 — News
THE SVERDLOVSK OBLAST.
OJSC SIBUR-Russian Tyres will cease the production of non-military products at its plant in Ekaterinburg. Two thirds of Urals Tyre Plant Ltd. employees will be made redundant in the nearest future.
The plant specialised in the production of the old type cross-ply tyres; the demand for these tyres has been falling year in year out. SIBUR did consider modernization plans for the Urals Tyre Plant Ltd. The modernization, however, demanded not only the purchase and installation of new equipment but the demolition of some workshops as well. The 7 billion spent on this would not have paid back any sooner than in 10 years.
Production volumes have dropped by 77.5% in the first half of 2009; the company incurred losses of 131.9 million roubles. The only product made by the Urals Tyre Plant still in demand are the special rollers for tanks. In April 2009 SIBUR was ready to sell the plant to OAO NPK Uralvagonzavod (Open Joint Stock Company Science and Production Corporation Ural Railway Car Plant) but the deal never happened.
Experts do not exclude the possibility that the most problematic asset of OJSC SIBUR-RussianTyres might be declared bankrupt. It is quite possible that after 609 employees have been laid off the remaining staff will be engaged in military contracts. The regional Trade Union Federation informed RusBusinessNews that the right to work of those being laid off will be protected by all available means. It cannot be ruled out that trade unions will start picketing the SIBUR headquarters in Moscow.
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