Nizhnekamskshina

History

2022: TATNEFT Sold Kama Tire Business

In mid-May 2022, TATNEFT announced the sale of the tire business in Russia. The assets were bought by TATNEFTEKHIMINFEST HOLDING (it serves as a coordination and expert center, which determines the strategy for the development of the oil and gas chemical complex of Tatarstan), which is not part of the TATNEFT group. The value of the transaction is not disclosed.

Under the terms of the agreement, Tatneftekhiminfest Holding, Tatneft sells shares in OOO UK Tatneft-Neftekhim, OOO Nizhnekamsk Truck Tire Plant and LLC Trading House KAMA, as well as shares in Nizhnekamskshin, Nizhnekamsk Mechanical Plant and Yarmolimermash-Tatatmash. Some companies will be renamed after the close of the transaction.

TATNEFT Sells Kama Tire Business

In the conditions of significant changes in the economic situation, including those caused by geopolitical processes, the sale of tire business will allow TATNEFT group to concentrate on key strategic projects, the company explained.

They also added that TATNEFT's cooperation with the tire complex enterprises in the Russian Federation, including the supply of raw materials, will continue on a commercial basis, taking into account the company's previous obligations. TATNEFT promises to maintain obligations to employees, as well as personnel and social obligations. The governing bodies have resigned.

In addition to the enterprises of the tire complex of Russia, TATNEFT also implements a project for the construction of a tire production plant in Sarani, Karaganda region in Kazakhstan, as part of a joint venture of LLP KamaTyresKZ with Allur Group of Companies JSC. As explained by TASS in the company, this project was not included in the perimeter of the deal to sell the tire business.

The tire business of TATNEFT accounted for about 22% of the Russian car tyre market. By 2023, the company planned to increase the production of Viatti tires to 7.4 million units, CMK tires to 2.8 million units per year.^[1]

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