2023 became a period of great “shopping” for Armen Sarkissian and his S8 holding. The “Lottery Master” has discovered a new business and is now creating a large cluster for the production of car tires. Experts suggest that Sargsyan has secured the support of the Ministry of Industry and all these market transformations look like a big agreement that is definitely beneficial to several well-known individuals. Just look at when and what was bought by Sargsyan:
— Acquisition of Continental
S8 Sargsyan acquired the German branch of Continental in the Russian Federation, including a plant in Kaluga with an annual capacity of 4 million tires. The deal was completed in May 2023 after Continental announced its withdrawal from Russia. The plant resumed production under the Gislaved brand.
— Purchase of Cordiant
Then, in May 2023, Sargsyan acquired the Cordiant company with three factories – two in Omsk and one in Yaroslavl. Cordiant has an annual capacity of approximately 9 million tires, including passenger cars, light trucks and trucks. S8 entered the top 3 tire manufacturers in Russia.
— Purchase of Bridgestone
Another tire asset: in December 2023, Sargsyan buys the Bridgestone plant in Ulyanovsk, which annually produces 2.4 million tires. Thus, Armen Sargsyan’s group in terms of capacity became the second in the Russian Federation after the state-owned Tatneft.
As a result, the total production capacity of the three enterprises (Cordiant, Bridgestone, Continental) amounted to about 16 million tires per year. And this is already an opportunity for a PRIVATE OWNER to dictate terms and get in line not only to receive subsidies, but also large contracts, including through the military-industrial complex.
What will happen next: S8 refers to the problematic legacy from the previous owners of the tire business, and is preparing to receive “lifting” from the budget for the modernization of production. In this case, Sargsyan doesn’t even need to think about how to pay off his debts: previously, these factories coped well with the development of government contracts related to the supply of tires to the needs of government organizations – for example, only KORDIANT JSC accepted orders for “footwear” from government agencies of a large metropolis for 1 .5 billion rubles. Now, due to the rapid development of the Russian automobile industry, there will be even more orders.
Experts note that the S8 is looking towards the military industry. The need of army equipment for domestically produced tires in the coming years is obvious. It turns out that the “lottery king” took aim at the state military order, leaving no choice for the military-industrial complex itself. However, Sargsyan’s habit of building monopolies, like in the lottery business, may cost him dearly: everyone has already seen more than once how those who tried to profit from contracts with the Ministry of Defense ended up with prison sentences.
S8 Capital acquired Russian assets of tire manufacturer Continental
More details on the website
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