NUR-SULTAN. /TASS/. Prime Minister of Kazakhstan Askar Mamin and President of Tatarstan Rustam Minnikhanov took part in the ceremony of starting the construction of a tire production plant in Saran, Karaganda region, reported the press service of the prime minister of Kazakhstan on Monday.
"The project is being implemented by KamaTyresKZ LLP - a joint venture of the Allur Group of Companies JSC (Kazakhstan) and Tatneft PJSC. The production capacity of the plant at the first stage will be 3.5 million multi-purpose tires annually, with subsequent increase to 9 million tires per year. The plant will increase the level of localization of automobile production in Kazakhstan and ensure import substitution of tires," the message reads.
It was noted that 40% of the products are intended for export. The project is scheduled for completion by the end of 2022. The total investment will amount to 125 billion tenge (more than $ 292 million).
As Mamin noted, the construction of a tire plant testifies to the expansion of industrial cooperation between Kazakhstan and Russia. "The construction of a tire plant in Saran will have a multiplier effect on the economy of the Karaganda region, and Kazakhstan as a whole, increasing competitiveness and creating new highly qualified jobs. The plant will become one of the largest in the region, its products will have a high export potential," the prime minister of Kazakhstan emphasized.
The president of Tatarstan noted that Kazakhstan is one of the leading foreign partners of the republic. In 2020, despite the coronavirus pandemic, trade grew by 14% and exceeded $ 630 million. "I am sure that the construction and launch of a tire plant will become an important element of a set of measures to ensure the intensive socio-economic development of Kazakhstan, and will also serve to further expand Tatarstan-Kazakhstan cooperation for the benefit of boosting relations between Russia and the Republic of Kazakhstan," he said.
It is planned that the plant will provide jobs for over 1,100 people. The personnel have already begun to undergo training at the tire enterprises of PJSC Tatneft.
About the project
In December 2020, Tatneft signed an agreement with the government of Kazakhstan, Kazakh Allur and KamaTyresKZ. The document envisages the construction of the only plant in Kazakhstan for the production of passenger car, light truck and truck tires with a capacity of 3 million passenger and light truck tires and 500,000 truck tires per year.
The agreement contains measures of state support, including co-financing of the project, the provision of tax preferences, the implementation of a set of measures to protect the tire market and support the domestic manufacturer, as well as measures to protect the rights and interests of Tatneft as a foreign investor.
It is expected to employ 1,100 people in production by 2025. The products will be supplied mainly to the domestic market of Kazakhstan (about 60%).
Joint investments of Tatneft and Allur will amount to 16.9% of the total project cost, or $ 47.9 million. The term of the agreement is 20 years.