NIZHNEKAMSK, Russia — Russian energy and chemicals company P.J.S.C. Tatneft is divesting its tire-manufacturing operations — grouped predominantly under the Nizhnekamskshina umbrella — as part of the strategy to narrow its focus on "key projects."
Tatneft, one of Europe's larger suppliers of synthetic rubber, said in a May 13 communique it has agreed to sell its Russian tire businesses to J.S.C. Tatneftekhiminvest-Holding, an entity independent of Tatneft Group.
The transaction covers the shares of Tatneft Group in Tatneft-Neftekhim Management Co., Nizhnekamsk Truck Tire Plant L.L.C. and Kama Trading House LLC.
The deal also covers shares in Nizhnekamskshina P.J.S.C., Nizhnekamsk Mechanical Plant J.S.C. and J.S.C. "Yarpolymermash-Tatneft."
"In the context of significant changes in the economic situation, including those caused by geopolitical processes, the sale of the tire business will allow Tatneft Group to concentrate on key strategic projects," Tatneft said without identifying any of the principals of Tatneftekhiminvest Holding.
Nizhnekamskshina — also known as Kama Tyres — operates two tire plants in Nizhnekamsk, in central Russia roughly 675 miles east of Moscow, one primarily focused on car and light truck tires and the other on truck, agricultural and industrial tires.
The company was ranked No. 40 among global tire makers last, according to Tire Business calculations, based on fiscal 2020 sales of $696 million.
Tatneft announced a capacity expansion at the plant last year, with goals to boost capacity for all-steel radial truck tires by 1.2 million units per year and add 33,000 units of annual capacity for large agricultural and industrial tires,
Tatneft will continue to supply raw materials, including synthetic rubbers, to the Russian tire industry.
The group's statement did not clarify if Tatneft's ongoing investment in a tire facility in northeastern Kazakhstan will be affected by the decision to exit the Russian tire industry.
KamaTyresKZ L.L.P. — a joint venture of Tatneft-Neftekhim and Kazakhstan's AllurTyres L.L.P. — is scheduled to bring on stream later this this year a factory in Saran capable of producing 3 million passenger and light vehicle tires and 500,000 truck tires a year.