NIZHNEKAMSK, Tatartan—Russian energy and petrochemicals company PJSC Tatneft has progressed with plans to build a tire manufacturing facility in northeastern Kazakhstan with the signing of a "package of agreements" with two government ministries.
KamaTyresKZ L.L.P.—a joint venture of Tatneft-Neftekhim and Kazakhstan's AllurTyres L.L.P.—signed separate agreements with the Kazakh ministry of foreign affairs and the ministry of industry and infrastructure development confirming "the provision of state support measures" for the tire plant, Tatneft said March 26.
The documents signed with the ministry of foreign affairs "regulate the main agreements of the parties on investment preferences during the construction of the plant and investment obligations of KamaTyresKZ L.L.P.," said the group statement.
In addition, the agreement lays out "the conditions for Kazakhstan to provide an in-kind grant for a land plot for the implementation of the investment project."
In separate agreements with the ministry of industry and infrastructure development, Tatneft said the two sides targeted "long-term stimulation of investments in industrial production."
The new investment agreements are the next step in the construction of the joint venture tire plant in the northeastern city of Saran.
Set for completion in 2022, the facility will manufacture 3 million passenger and light vehicle tires as well as 500,000 truck tires a year. The plant will ramp up to full capacity by 2024, according to Tatneft.
The factory, which is expected to create more than 1,100 jobs, will primarily supply tires to the Russian, Kazakh and central Asian markets.
Tatneft and Allur announced plans for the construction of the greenfield tire facility in July last year and formed the KamaTyresKZ L.L.P. joint venture in October 2020.
Tatnfet's Petrochemical Complex, part of the Russian energy group's downstream business, manufactures tires and carbon black in Nizhnekamsk, Tatarstan, in southwestern Russia.
The Allur Group of Companies is a shareholder in Kazakhstan's largest car manufacturer, L.L.P. SaryarkaAvtoProm.