The Russian Tatneft bought out JSC Birinchi Rezinotekhnika Zavodi (First Rubber Plant, BRZ) from Uzbekistan, the press service of the Russian government reported.
The deal was signed following the meeting of the joint government commission by the first deputy chairman of the board of Uzkimyosanoat, Odil Temirov, and the general director of Tatneft, Nail Maganov.
As of December 2, 91.8% of the plant belongs to Uzkimyosanoat, 8.2% belongs to a company part of Uzkimyoimpeks holding. The authorized capital of the tire plant is 658.4 billion soums, or US$ 60 million.
As a result of the transaction, Tatneft received 100% control over the enterprise. However, the cost of the agreement has not been disclosed.
Uzkimyosanoat completed the construction of the $200 million tire plant in August 2018. The production capacity is 3 million car tires, 200 thousand agricultural tires and 100 thousand running meters of conveyor belt per year. Chinese Poly Technologies and Linglong acted as the general contractors of the project. Tires were not produced in Uzbekistan before the launch of the plant in Angren.
Uzkimyosanoat and Tatneft holdings planned to create a joint venture with a 51% share of the Russian company on the basis of Birinchi Rezinotekhnika Zavodi LLC. The relevant agreement was signed in November 2019. It was assumed that BRZ would be integrated into Tatneft's tire business. Then it was reported that the Russian company would invest at least $500 million in the development of production.
In 2020, the tire plant was provided 40 billion soums in a loan from the Anti-Crisis Fund to cover primary expenses.
In 2021, the enterprise produced 244.9 thousand tires, 4,630 tires for agricultural machineries and 29.7 thousand running meters of conveyor belts. Automobile and agricultural tires are produced under the BARS brand.