TATNEFT launches tyre production in Kazakhstan
The Russian company TATNEFT jointly with Kazakhstan Allur Group of Companies intends to launch a joint venture to produce automobile tires in Kazakhstan. The Agreement of Intent and the Roadmap for the implementation of the project were signed during the visit of the Deputy Prime Minister of the Republic of Kazakhstan Roman Sklyar and the Deputy Minister of Foreign Affairs of Kazakhstan Almas Aidarov to Nizhnekamsk. The signing was also attended by the Prime Minister of Tatarstan Alexey Pesoshin.
As noted in the agreement, the project calls for the construction of a new tyre plant in Kazakhstan to produce tires for cars, light trucks and trucks. The planned capacity of the enterprise is 3 million tires for cars, light trucks, as well as 500,000 truck tires per year. The volume of investments will range from $140 to $188 million.
“This project is strategically important for the further development of the automobile industry in Kazakhstan. This is an absolutely new product that has not been produced in Kazakhstan since the closure of Shymkent Tyre Plant. The negotiations have been going on for a long time, we have reached an intermediate result. However, there is still a lot of work to be done, by this autumn we are to agree with the investor on the main conditions for its implementation”, said the Deputy Foreign Minister Almas Aidarov.
“For several years, the automobile industry of Kazakhstan has been growing and is among the leaders as well as occupies one of the most important sectors in the machine building of the Republic of Kazakhstan. The development prospects and the possibility of entering the markets of the EAEU and neighboring countries continue attracting new technologies and investments to the country. The creation of our own automotive component base, in particular, the production of tyres is one of the most important stages in the development of the industry, which will make it possible to take a serious step forward to increasing the localization of products of Kazakhstan plants”, - said Andrey Lavrentyev, the Chairman of the Board of Directors of Allur Group of Companies.
Today, Kazakhstan's demand for tyres is fully covered by imports. In 2018, more than 4 million tyres and tyre castings for cars were imported. Additionally, in recent years, the demand for budget class cars has grown significantly both in Kazakhstan and in neighboring countries.
“The creation of a new tyre production facility will be another step forward for Tatneft in strengthening the tire complex. We are proud that our competencies in the field of tire production are in demand not only in Russia, but also abroad, and we will be glad to contribute to the development of the automobile industry in Kazakhstan”, said Nail Maganov, Director General of TATNEFT PJSC.
The tyre production is expected to start in 2022. The project intends to create about 800 jobs, taking into account related industries. According to the Roadmap for the implementation of the project, automobile tires will be sent to the primary assembly of cars produced in Kazakhstan, to the secondary market, as well as for export to neighboring countries.
For reference:
Allur Group of Companies JSC is a shareholder of the largest car manufacturer in Kazakhstan SaryarkaAutoProm LLP, an official distributor, producer and dealer of JAC, Ankai, Yutong, Chevrolet, Ravon brands, Hyundai, Niva Chevrolet, UAZ and MAN in the territory of Kazakhstan.
TATNEFT PJSC is one of the largest Russian vertically-integrated oil companies, which dynamically develops oil and gas production, oil refining, petrochemicals, a tire complex, a network of filling stations, power engineering, development and production of equipment for the oil and gas industry and a block of service structures. TATNEFT is one of the largest Russian public companies with a market capitalization of over $28 billion by the end of 2019.