Last checked at 27 Nov 2019 08:39
27 November 2019
PJSC TATNEFT and JSC "UZKIMYOSANOAT" signed an agreement to establish a joint venture company
PJSC TATNEFT signed an agreement on November 26, 2019 to establish a joint venture company with JSC "UZKIMYOSANOAT" and OOO "Birinchi Mechanical Rubber Goods Factory" (Uzbekistan).
The parties agreed to establish the Joint Venture on the basis of "Birinchi Mechanical Rubber Goods Factory" (hereinafter referred to as BMRF) in the percentages as follows: PJSC TATNEFT - 51%, JSC "Uzkimyosanoat" - 49%.
The transaction conclusion (Joint Venture establishment) will occur after execution of a number of conditions precedent by the parties. The transaction is expected to be completed in the next few months.
BMRF was founded in 2014 following the Decree of the President of the Republic of Uzbekistan "On the measures of organizing the construction of the industrial rubber products factory within the territory of the "Angren" free industrial zone in the Republic of Uzbekistan".
The products output began from July 2018 with the following annual production capacity:
- 3 million car tyres (21 standard sizes);
- 200 thousand agricultural tyres (2 standard sizes);
- 100 thousand running meters of the conveyor belt (30 kinds of rubberized-fabric and steel cord belts).
Automotive and agricultural tyres are produced under the BARS brand.
The agreement creates a unique opportunity for TATNEFT Company to diversify and expand the production and marketing of the TATNEFT Group's tyre products at the promising in terms of capacity and annual growth rate of Central Asia and Middle East markets.
BMRF will be integrated in the TATNEFT Group's tyre manufacturing business. Currently, the Company's tyre manufacturing business enterprises are united under the KAMA TYRES brand. The management of the Company's tyre manufacturing business enterprises is carried out by OOO "Tatneft-Neftekhim" Management Company. This business line consists of PJSC "Nizhnekamskshina", OOO "Nizhnekamsk SSC Tyre Factory", JSC "Nizhnekamsk Mechanical Factory", JSC "Tatneft-Yarpolimermash" (Yaroslavl), OOO "Energoshinservis", OOO "Kama" Scientific and Technical Center" and OOO "Kama" Trading House".
The parties have agreed that the transaction price shall be kept confidential. The Management believes that the transaction shall have no significant impact on the financial position of TATNEFT.
This press release contains inside information.
Forward-looking statements: This press release contains certain statements regarding future events and expectations, which are forward-looking in nature. Any statement in this press release that is not a historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ materially. PJSC TATNEFT shall assume no obligation to update such forecasts to reflect actual results, changes in assumptions or changes in factors affecting these statements.