"Uzkhimprom” to create joint enterprise with Chinese Linlong Rubber for construction of tire plant

Business Materials 7 March 2013 10:43 (UTC +04:00)

Uzbekistan, Tashkent, March 7 /Trend D. Azizov/

The State Joint Stock Company (SJSC) "Uzkhimprom" is negotiating with Chinese Linlong Rubber Co. on creation of a joint enterprise for construction of a tire plant, vice president of the SJSC Zokir Kuchkarov said at press conference on Wednesday.

According to him, in the middle of last year "Uzkhimprom" and Linlong Rubber Co. signed a memorandum on creation of a joint enterprise, and since then the parties have discussed in detail a number of issues including those of tire production technologies.

"Currently we are close to wrapping up our negotiations, and the adoption of the final decision is expected in the nearest future," Kuchkarov said.

According to him, the tires produced by the joint enterprise should meet the standards of General Motors because they will be used to equip automobiles of GM Uzbekistan.

It was previously announced that Uzbekistan was going to realize a project with the preliminary cost of $230 million on construction of a tire plant in "Angren" special industrial zone, Tashkent province, on the basis of "Rezinotekhnika" plant.

According to the state investment program for 2013, the estimated capacity of the plant is 3 million tires per year.

Uzkhimprom signed a contract with Chinese Citic Pacific Ltd. on construction of a rubber plant in Uzbekistan with the cost of $155 million.

The plant with production capacity of 1.5 million motor vehicle tires, 200,000 agricultural tires and 100,000 linear meters of conveyor belt annually was planned to be constructed on the basis of the OJSC "Rezinotekhnika".

Later Uzbekistan abandoned the project due to the changes of the conditions of implementation of the project and its technical parameters.

Before the collapse of the Soviet Union, JSC Rezinotekhnika was the largest producer of mechanical rubber goods in Uzbekistan.

Its annual manufacturing capacity was 120,000 pieces of tires for passenger cars and trailers, 600,000 square meters of rubberized fabric and one thousand tons of commodity rubber a year.
Nowadays productive capacities of the enterprise are used by approximately 10 percent.