NIZHNEKAMSK, Russia — Russian energy and petrochemicals company P.J.S.C. Tatneft has agreed to work with Kazakhstan automotive manufacturer Allur Group to build a tire plant in Kazakhstan.
The proposed joint venture project will oversee the construction of a tire factory in a "residential-operations rubber goods production facility" in Kazakhstan, Tatneft disclosed July 28.
Set for completion in 2022, the facility will produce 3 million passenger and light vehicle tires as well as 500,000 truck tires a year, according to Tatneft, parent of tire maker Nizhnekamskshina, which goes to market under the Kama and Viatti brands.
The partners did not disclose their expected investment in the project.
The plant, which is expected create 800 jobs, will supply tires primarily to cars manufactured in Kazakhstan, while also exporting to neighboring countries.
The establishment of the facility will strengthen Tatneft's tire operations outside Russia, Nail Maganov, general director of PJSC Tatneft said during the agreement signing ceremony.
The Allur Group of Companies is a shareholder in Kazakhstan's "largest car manufacturer" L.L.P SaryarkaAvtoProm, which produces under license car brands such as Peugeot, Ravon, Hyundai, Chevrolet Niva and Iveco.
Commenting on the agreement, Allur Group Chairman Andrey Lavrentiev said the facility would allow it to enter new markets in Europe and in neighboring countries.
"The establishment of our own auto component base, in particular, the production of tires is one of the most important stages in the development of the industry," he added.
Tatneft's Petrochemical Complex, part of the Russian energy group's downstream business, manufactures tires and carbon black in Nizhnekamsk, Tatarstan, in southwestern Russia.
Nizhnekamskshina produced 13 million tires in 2017, accounting for 20% of Russia's total demand, as well as 134,000 metric tons of carbon black.