TATNEFT : Shall Organize Tyre Production in Kazakhstan

An Agreement of Intent and a Roadmap for the implementation of the joint project has been signed in Nizhnekamsk today by the heads of the Russian and the Kazakh companies.

PJSC TATNEFT and JSC Allur Group of Companies will establish a joint tyre manufacturing facility in Kazakhstan. Nail Maganov, General Director of TATNEFT, and Andrey Lavrentiev, Chairman of the Board of Directors of the Allur Group of Companies, have signed in Nizhnekamsk today the Agreement of Intent and the Roadmap for the implementation of a project for the construction of a tyre manufacturing facility at the territory of a residential-operations rubber goods production complex within of the Republic of Kazakhstan. The signing was attended by Alexey Pesoshin, Prime Minister of Tatarstan, and Roman Sklyar, Deputy Prime Minister of Kazakhstan.

It is assumed that TATNEFT and Allur Group of Companies will establish a joint venture for the implementation of the project. The project shall provide for the construction of a new manufacturing facility in Kazakhstan for the production of passenger car, LVC and truck tyres. The planned capacity of the enterprise is 3 million passenger and LVC tyres, as well as 0.5 million truck tyres per year. The production operation of the facility is expected to start in 2022. The project will create about 800 jobs, taking into account related industries.

Car tyres will be sent to the primary assembly of cars produced in Kazakhstan, to the secondary market, as well as for export to neighboring countries. Nail Maganov, General Director of PJSC TATNEFT, pointed out: 'The establishment of a new production facility will be another step for TATNEFT in strengthening the tyre manufacturing complex. We are proud that our competencies in the field of tyre production are in demand not only in Russia, but also abroad, and we will be glad to contribute to the development of the automotive industry in Kazakhstan'.

According to Andrey Lavrentiev, Chairman of the Board of Directors of the Allur Group of Companies, 'For several years, the Kazakhstan auto industry has been leading in terms of growth in the industry and has occupied one of the most important areas in the machine building of the Republic of Kazakhstan. The development prospects and the possibility of the entrance to the market of the EAEU and neighboring countries continue attracting new technologies and investments to the country. The establishment of our own auto component base, in particular, the production of tyres is one of the most important stages in the development of the industry, which will allow the possibility of taking a serious step in increasing the products' localization of the Kazakhstani factories'.

Reference information:

PJSC TATNEFT is one of the largest Russian vertically integrated oil companies, which dynamically develops oil and gas production, oil refining, petrochemicals, a tyre 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 USD 28 billion at the end of 2019.

JSC 'Group of Companies Allur' is a shareholder of the largest car manufacturer in Kazakhstan LLP 'SaryarkaAvtoProm', an official distributor, manufacturer and dealer of the brands JAC, Ankai, Yutong, Chevrolet, Ravon, manufacturer of Hyundai, Niva Chevrolet, UAZ and MAN in the territory of Kazakhstan.