Cordiant firm, formerly Sibur-Russian Tyres, will invest $400 million in development of its Omskshina enterprise in Western Siberia this year, Cordiant CEO Dmitry Sokov said on Friday.

Cordiant and the government of the Omsk region previously signed an agreement under which they would upgrade the plant and create an additional 1,800 jobs, while the regional government would provide tax breaks for the enterprise.

"The investors are ready to refresh their production at the plant and start making a new line of products using new machines already in the fourth quarter of 2012. We may not get part [of the income] up front, but in the long-term all investment will be repaid," Omsk Governor Viktor Nazarov said after visiting the plant.

New facilities at the Omskshina tire-making plant will allow making four million tires a year under the Cordiant brand name, a trademark for mid-cost tires for passenger cars.