ANGREN, Uzbekistan — P.J.S.C Tatneft, the Russian energy and petrochemicals group that bought Nokian Tyres P.L.C.'s Russian assets in early March, has struck again, acquiring Uzbek tire maker Birinchi Rezinotexnika Zavodi L.L.C. for an enterprise value of $80 million.
Based on the agreement, which closed Jan. 20, Tatneft is required to invest in the production of new types of rubber engineering products at the plant after the acquisition. The deal also carries over Birinchi's $153 million worth of credit obligations and debts, according to former major shareholder Uzkimyosanoat.
Located in Angren, in eastern Uzbekistan, Birinchi's factory has the capacity to produce 3 million units of BARS-branded passenger tires, 200,000 agricultural tires and 100,000 meters of conveyor belting.
The Angren plant was built in 2015 and 2016 by Uzbekistan National Chemical in partnership with China's Poly Technologies Inc., a turnkey engineering concern.
Prior to the transaction, 91.8% of Birinchi's shares were held by Uzkimyosanoat, "an integral corporate structure uniting chemical enterprises of the Republic of Uzbekistan." The remaining 8.2% belonged to Uzkimyoimpeks, a local chemicals company.
Tatneft and the Uzebek plant's backers have discussed Tatneft's involvement in the project since as far back as 2019, according to local news media reports.
The deal coincides with Tatneft's approximately $307 million acquisition of Nokian Tyres' Russian assets, which concluded in March.
In addition, Tatneft is involved as a joint-venture partner in the construction of a tire plant in Saran, Kazakhstan, which is set for production soon.
Tatneft's moves to invest in these tire and rubber businesses follows its decision in May 2022 to sell its Russia-based tire operations — which operated collectively under the Nizhnekamskshina umbrella — to JSC Tatneftekhiminvest-Holding, which it said is not part of the Tatneft Group.
At the time, the group said the sale of the tire business would allow it "to concentrate on key strategic projects."
