2 Dec 2022 13:20

Tatneft to acquire Uzbekistan's Birinchi Rezinotexnika Zavodi LLC tire manufacturer

SAMARKAND/MOSCOW. Dec 2 (Interfax) - Tatneft in Samarkand has signed an agreement with JSC Uzkimyosanoat on purchasing Uzbekistan's Birinchi Rezinotexnika Zavodi (BRZ) LLC, which manufactures tires, an Interfax correspondent reported from the signing ceremony.

Tatneft will obtain 100% control over the enterprise following the deal.

As reported, Tatneft and Uzkimyosanoat planned to establish a joint venture based on BRZ LLC, with the corresponding agreement signed in November 2019, and the assumption that BRZ LLC would be integrated into Tatneft's tire business.

Additionally, during Russian Prime Minister Mikhail Mishustin's first visit to Uzbekistan, Tatneft CEO Nail Maganov and Uzbekneftegaz Executive Board Chairman Mehriddin Abdullayev signed a memorandum of understanding.

BRZ LLC was founded in 2014 as per the instruction of the president of Uzbekistan titled "On measures to organize the construction of a rubber products plant on the territory of the Angren free industrial zone in the Republic of Uzbekistan".

Manufacturing began in July 2018, with annual production capacity of three million auto tires, 200,000 agriculture tires, and 100,000 linear meters of conveyor belts.

BRZ LLC in 2021 manufactured 244,900 tires, 4,630 tires for agricultural machinery, and 29,700 linear meters of conveyor belts. Auto and agriculture tires are produced under the BARS brand name.