Tatneft buys tyre maker Birinchi

Oil and gas company Tatneft, the firm seeking to acquire a number of Nokian Tyres subsidiaries in Russia, has purchased Uzbekhistan’s only tyre maker, Birinchi rezinotexnika zavodi (The First Rubber Engineering Factory). Former majority owner Uzkimyosanoat JSC reports that Tatneft paid US$80 million for a 100 per cent shareholding in the tyre maker, closing a deal announced late last year. Tatneft also takes over credit obligations and debts equal to $153 million.

As of 31 December 2022, Uzkimyosanoat JSC held 91.8 per cent of Birinchi’s shares, with the remainder owned by Uzkimyoimpeks LLC.

According to the official brz.uz/en website, Birinchi was founded in 2014 and began producing tyres in July 2018. The tyre maker claims an annual production capacity of 3 million passenger car tyres (in 21 sizes) and says its car tyre production has benefitted from technological tie-ins with other firms, including Linglong Tire. It also claims capacities to make 200,000 agricultural tyres (2 sizes) and 100,000 linear metres of conveyer belts.

Actual production was just a fraction of these capacities, reports news agency Interfax: In 2021, Birinchi is said to have manufactured just 244,900 car tyres, 4,630 agricultural tyres and 29,700 linear metres of conveyor belts.

Truck & military tyres joining Birinchi range

Birinchi announced on 20 January 2023 its intention to begin producing heavy vehicle tyres in order to comply with a presidential decree issued on 28 December 2022. The tyre maker aims for an annual production capacity of 130,000 truck, bus and military vehicle tyres and anticipates that this project will create 85 jobs.

Truck tyres will account for 55,000 units of this annual capacity (20,000 pieces of 295/80 R22, 20,000 pieces of 315/80 R22.5 and 15,000 pieces of 235/75 R17.5); bus tyres will take a further 50,000 units of capacity (20,000 pieces of 215/75 R17.5, 15,000 pieces of 11 R22, 15,000 pieces of 235/75 R17.5), while tyres for military vehicles will account for 25,000 units of annual capacity (20,000 pieces of 425/85 R21 and 5,000 pieces of 13.00-18).