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Krasnoyarsk Tires Roll to Crisis
The management of Krasnoyarsky Tire Factory, incorporated into Amtel holding, reported Wednesday the upcoming restructuring of the enterprise due to the sales crisis. A large number of the plant’s workers are to be laid off and the output of the tires for cars and trucks is to halve. The local administration, worried about massive lay-offs, issued a special resolution to recommend boosting the state control over the plant.
Krasnoyarsky Tire Factory is included into Amtel-Sibir tire complex. The sales volume of the enterprise is 2.4 billion rubles, half of its products are tires for cars and trucks, the rest are tires for agricultural and military vehicles. Back taxes of the plant amount to 7.5 million rubles. The plant, which employs 2,800 people, halted its primary production in July since by that time the reserve of goods for 2.5 months ahead had stored up at warehouses. The factory's director general Ravil Davydov told Kommersant on Wednesday that they did not manage to solve the problem with sales, therefore Amtel decided to restructure the manufacturing. Its first stage will cut the output of tires for cars and trucks, what is more, their production may be stopped altogether. The plant is to focus on the production of goods that are sold well, for example, tires for agricultural, military and aircraft enginery.
Krasnoyarsky Tire Factory is determined to cut expenses by lying off workers. Half of the personnel, engaged in the output of tires for cars and trucks, have already been informed of upcoming dismissals. The administration of Krasnoyarsk Region is concerned about the current state of affairs. Local officials passed a resolution on Wednesday recommending stepping up the state control over the situation on the plant and asking to help the laid-off workers to find new employment.
It is unclear as yet what will happen to the factory after its restructuring. The director general of Amtel-Sibir says it has been decided to repurpose the plant, but a small output of civil tires may be preserved. On the other hand, the possible sale of Krasnoyarsky Tire Plant is rumored among the plant’s management and workers. Sources in the regional administration told Kommersant that the management had once tried to sell the enterprise but apparently found no purchasers, which may be the reason for the restructuring.
www.kommersant.com
All the Article in Russian as of Sep. 01, 2005
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