NIZHNEKAMSK, Russia—Russian tire manufacturer P.J.S.C. Nizhnekamskshina is moving forward with plans to expand production capacity for all-steel radial truck tires by 75 percent at its sole plant in Nizhnekamsk.
The project involves the renewal of a contract with Siemens A.G. to expand a logistics system the Germany supplier installed at the plant to support an earlier expansion, according to P.J.S.C. Tatneft, Nizhnekamsk's parent company.
Phase 1 of the project was completed in 2019, increasing production of steel-cord truck tires at the Nizhnekamsk Truck Tyre Factory site by 300,000 units per year, to 1.6 million units. Phase 2 of the project will boost output to 2.8 million units annually.
Tatneft's statement did not elaborate on the details on the investment project, but according to local press reports, phase 1 included the installation of 18 presses and an investment of $65 million. Phase 2 is estimated to cost nearly $270 million.
Siemens, a logistics partner with Nizhnekamskshina since 2007, will bolster the plant's production process and its production execution system (MES), which bridges manufacturing and management within the factory.
Under the new agreement with Siemens, the Russian division of the German technology group will take over the equipment supply, engineering and general management of the processes at the truck tire factory.
Siemens-Russia will provide for "the performance of installation supervision, commissioning and consulting services," the Tatneft statement added.
Among other features, the logistics system will include a WMS warehouse management system, a transport system and networking equipment, as well as autonomous robotic transport for moving semi-finished products.
The main task of the project, according to Tatneft, is to "ensure the timely delivery and storage of raw and finished tires," as production capacity increases.
Nizhnekamskshina sells tires under the brand names Kama and Kama Pro and is a key supplier to commercial vehicles producers in Russia, Tatneft said.
The company is considered the 63rd largest tire maker worldwide, according to Tire Business' annual Global Tire Report, with fiscal 2019 sales of $219 million.
Tatneft is a vertically integrated holding company involved in various aspects of the petroleum industry, from crude oil and gas production, petroleum refining and petrochemicals production to tire manufacturing and a network of filling stations and services.