Cordiant Cordiant

OJSC Cordiant is an independent Russian tire manufacturer. "The Holding" Cordiant "includes 4 tire plants and 5 branches. The share of Cordiant in the total production of tires in the Russian Federation is 21%: in the segment of passenger tires - 16%, light freight - 26%, freight - 39%, agricultural - 53%, industrial - 67% (according to the results of 2011). In 2011, the total production of the Holding Company amounted to more than 9 million tires.

OJSC "Cordiant" produces and supplies about 400 tire models. The Company is the undisputed leader in the production of tires for trucks and agricultural machinery. The company continues to increase the share of branded products in the product portfolio, which in the 1 half of 2012 amounted to the total volume of 50% production (in 2011 - 42%).

Major brands include Cordiant (passenger and light duty tires) and TyRex (freight and agricultural tires).

The Holding's products are sold through a network of 150 distributors in all regions of Russia, about 20% of the products are exported to more than 50 countries of the world.

OJSC "Cordiant" seeks to create a global tire holding. By 2015, due to organic growth and transactions M&A , the Company expects to enter the Top 10 global manufacturers, and in the Eastern market to Europe become the largest player producing all the main types of tires.

The Company plans to achieve EBITDA of RUB 7.5 bln and increase revenue to RUB 50 bln by gradually implementing all the measures included in the development strategy.

Effective development of the Company is achieved by high professionalism of managers and workers, investments in modern equipment and R&D.

The Company's goal is to concentrate efforts on sales growth in the most marginal market segments:

• strengthening positions and increasing the share to 30-32% in the price segment B of passenger tires;
• achieving a 30% market share in the SSC-tires group in the V/V + price segments;
• entering the market and taking a share of 40% in the group of large and ultra-large-sized tires of segment B;
• while maintaining the company's market position in other tire groups.

The largest completed projects: the creation of the production of SSC tires - 370 thousand units per year ($30 million), the launch of the production of passenger tires with metal cord in the belt - 1.2 million units per year ($40 million). In addition, 20 investment projects were implemented with a total value of $60 million.

Key projects: the creation of the production of SSC tires - 650th. units per year ($280mn).

Until 2018, the Cordiant investment program assumes an investment of about $550 million in capacity expansion, as a result of which total capacity will increase by about 40% to 12 million units per year.

Earlier - the general dealer of AK SIBUR OJSC in the tire market. It was created with the aim of organizing and developing a unified distribution network and conducting a unified marketing policy for the sale of tires. The Siberian-Ural Oil and Gas Chemical Company (AK Sibur) is a Russian manufacturer of oil and gas chemical products, in particular tires, rubbers, polymers and liquefied gases. Currently, the company controls the production of more than half of all tires produced in Russia.

About outsourcing

Director of the IT Department of SIBUR-Russian Tires OJSC Anshina Marina expressed her views on the use of IT outsourcing. The usual reasons for outsourcing IT are: dissatisfaction with IT, the desire to get rid of the "headache" about IT, the desire to use the experience of outsiders. Another reasons are the desire to reduce costs, increase OPEX and reduce CAPEX. According to Marina Anshina, these expectations from the use of outsourcing are mainly not met. Dissatisfaction with IT is growing: the question arises for the leadership: what does it have to pay so much for? Practice shows that outsourcing never leads to cost reduction, for the customer outsourcing cannot be cheaper with an equal level of IT management. It is possible to achieve an increase in operating costs, but subject to the reasonable construction of an outsourcing scheme. The experience of SIBUR-Russian Tires is as follows: the cost of servicing one workplace in the outsourcing market is twice as much as the cost of supporting in-house. "But the situation in the service market is rapidly changing," said Marina Anshina.

Each company once faces a choice: go to outsourcing, insourcing or leave everything as it is, until it is clear where to move. Some enterprises for which the speed of business change is important do not resort to outsourcing, try to use the resources of their own IT departments. Enterprises that decide to switch to outsourcing can do this immediately, or gradually, through insourcing (as SIBUR).

History

2024

Cordiant "bought from the French A.Raymond Group Nizhny Novgorod plant for the production of auto components

On October 18, 2024, it became known about the acquisition by the Cordiant holding of the Russian division of the French company A.Raymond Group. The deal to buy the A. Raimond RUS plant, specializing in the production of automotive components from plastic, was completed on October 15, 2024. Read more here.

Severgroup bought Cordiant

Severgroup, the investment manager of Alexei Mordashov, acquired the Cordiant group of companies, one of the leading Russian manufacturers of tires and auto components. The deal, which became known on October 2, 2024, allowed Severgroup to become the owner of the third largest tire manufacturer in Russia.

According to Interfax, the ownership of the assets of Cordiant passed to Severgroup on October 1, 2024 after the approval of the transaction by the antimonopoly authorities. The financial details and terms of the acquisition were not disclosed.

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Freepik

As a result of the transaction, Severgroup gained control over tire plants in Yaroslavl, Omsk, Kaluga Region and Ulyanovsk with a total design capacity of 15 million tires per year. The company also acquired the rights to the portfolio of brands "Cordiant," including Cordiant, Tunga, Torrero, Gislaved in the segment of passenger tires and Cordiant Professional, Tyrex - in the freight segment.

"The assets of Cordiant became part of Severgroup during a very important period of transformation for the market. The ability to meet the growing demand of the domestic consumer as a result of the localization of these industries depends on the effective management of enterprises, - noted the strategic importance of the acquisition by Severgroup CEO Alexei Mordashov.

According to Andrei Tomyshev, partner of the consulting company B1, the previous owner of Cordiant, S8 Capital holding, has become an active industrial player over the past two years, having successfully consolidated and restarted production thanks to expertise in the field of digital technologies.

Severgroup plans to develop the potential of Cordiant in the tire and auto component market. Earlier it was reported about the company's intentions to reach the full load of all enterprises by 2026 and consider the possibility of exporting products to Latin America, Africa and the Gulf countries.^[1]

2023

Kaluga Tire Plant Continental renamed "Cordiant Kaluga"

In August 2023, the Continental Kaluga plant (Kaluga) changed its name to Kordiant Kaluga LLC and entered the holding of the same name: Kordiant JSC received 100% of the authorized capital of the plant. Read more here.

S8 Capital bought Cordiant

On May 30, 2023, S8 Capital holding announced the purchase of tire manufacturer Cordiant. The company did not disclose the financial terms of the agreement.

As part of the strategy to expand its presence in the industrial sector, consolidate its tire brand portfolio and expand its presence in the automotive market, the multidisciplinary holding S8 Capital acquired a 100% stake in one of the leading tire manufacturers in the Russian Federation - Kordiant JSC, S8 said in a statement.

Holding S8 Capital acquired tire manufacturer "Cordiant"

The perimeter of the transaction includes the following assets of Cordiant:

• 3 production sites: one in Yaroslavl and two in Omsk, making tires for cars, light trucks and trucks;
• Intyre Scientific and Technical Center
• Technotire Repair Center, specializing in the provision of services in the field of maintenance, as well as repair of industrial equipment.

Before the deal, Cordiant JSC belonged to top management. The majority shareholder was Galina Gurinova, wife of Vadim Gurinov, founder and chairman of the board of directors of Service-Telecom Group of Companies, representatives of the former shareholder told Kommersant. The representative of Vadim Gurinov noted that the deal is strategic for both parties. The sale of Cordiant will allow us to concentrate on the development of the tower business and other investment projects, the newspaper's interlocutor added.

With the acquisition of Kordiant JSC, in the very near future we will be able to offer the market a wide product line of cars, light trucks and trucks: from the economy to the premium segment, - said Torsten Schubert, managing director of the multidisciplinary holding S8 Capital, on May 30, 2023.

At S8 Capital, Cordiant's capacity was estimated at about 9 million tires. Together with the former Continental S8 site, it will eventually concentrate capacities of almost 14 million car tires per year.^[2]

2012

OJSC SIBUR - Russian Tires announced the renaming of Kordiant Open Joint Stock Company. The corresponding changes in the constituent documents entered into force on April 3, 2012. The full name in English is Joint stock company "Cordiant," abbreviated as JSC "Cordiant."

At the end of 2011, a group of investors, including the management of Kordiant OJSC, bought SIBUR-Russian Tires from SIBUR holding, which combined the main tire assets of the petrochemical holding.

"The renaming of the company is associated not only with the change of shareholders, but also with the evolutionary development of the company, the transition from a strategy for consolidating disparate industry assets to a strategy for innovative development," said Dmitry Sokov, CEO of Kordiant Holding.

The legal renaming of "Cordiant" is accompanied by the introduction of a new corporate style, which provides, in particular, the use of new elements of external and internal design of factories, new corporate symbols and other visual elements. Based on the product brand Cordiant, which was launched by the company in 2005.

The main production sites of the Holding are: Yaroslavl Tire Plant OJSC, Yaroslavl, specializes in the production of solid metal cord (SMK) trucks, passenger tires and aircraft cars; OJSC Omskshina, Omsk, specializes in the production of truck tires; CJSC "Cordiant - Vostok," Omsk, specializes in the production of passenger tires; Voltyr-Prom OJSC, Volzhsky, specializes in the production of agricultural and industrial tires.

Scientific and technical developments are conducted by a separate subsidiary of the Intyre Research and Development Center. Repair and maintenance of enterprises is carried out by the structural division of RC Technotire LLC.

The total number of workers at the enterprises of Kordiant Holding - over 10 thousand people

1930e-2013

Notes