Tashkent, Uzbekistan (UzDaily.com) -- The Russian company Tatneft has acquired Birinchi Rezinotekhnika Zavodi (First Rubber Plant).

The cost of the transaction makes up 826.57 billion soums (US$80 million). Previously, Uzkimyosanoat owned 91.8% of the authorized capital of the plant and Uzkimyoimpeks - 8.2%.

The deal to acquire the plant by Tatneft was agreed at the Uzbek-Russian business forum held in Samarkand on 1-2 December 2022.

Tatneft acquires Birinchi Rezinotekhnika Zavodi for US$80 million. The Russian company also pledged to pay off US$153 million of the plant’s debts.

The Tatneft Company also assumed obligations to organize the production of new types of products.

Uzkimyosanoat, Uzkimyoimpeks and Tatneft signed an agreement on the sale and purchase of Birinchi Rezinotehnika Zavodi on 20 January 2023 with the assistance of White & Case law firm.

"Birinchi Rezinotehnika Zavodi" was put into operation in 2018. The Chinese companies Poly Technologies and Linglong built the plant. For the construction of the plant, funds were attracted from the Eximbank of the People’s Republic of China. The cost of the project is US$183.96 million.

The plant can produce up to 3 million tires for passenger cars, 200,000 tires for agricultural machinery and 100,000 meters of conveyor belt per year.