Russia's state-owned Tostechnologii and petrochemicals producer Sibur have signed a memorandum of understanding with Italy's Pirelli for two joint ventures on tire and steelcord production, Sibur said in a statement Friday.
The first JV involves the streamlining and reorganization of the assets of Sibur-Russian Tyres, wholly owned by Sibur. The transaction is slated for completion in June 2011 and the JV aims to achieve a target production of 3 million tires by the end of 2011.
The second JV is for the production of automobile tires for the industrial sector, as well as tires for heavy-duty trucks and agricultural machinery, in order to meet the rising demand in Russia, the statement said. Sibur will transfer to the second JV, established with Pirelli and Tostechnologii, 40.1% stake, split equally, in Sibur-Russian Tyres.
Pirelli will gain control over a 10% stake in Sibur-Russian Tyres in exchange for technological and managerial contribution to the development of the tire holding.
After completion of the transfer of assets and restructuring, Sibur's share in Sibur-Russian Tyres will be 49.9%.
According to the statement, the three partners will also conclude agreements on the production and supply of synthetic rubber, where Sibur will supply raw materials to Pirelli and the two JVs on a long-term basis. The JVs will also provide for the joint production of new high-tech rubber products for the manufacture of modern high-quality tires.
In addition, Pirelli and Tostechnologii also plan to build a plant in the Samara region in the special economic zone of Togliatti to produce metal cord used in steel radial tires, the statement said. A plant to produce super large tires is also in the pipeline, the statement added.
The first JV involves the streamlining and reorganization of the assets of Sibur-Russian Tyres, wholly owned by Sibur. The transaction is slated for completion in June 2011 and the JV aims to achieve a target production of 3 million tires by the end of 2011.
The second JV is for the production of automobile tires for the industrial sector, as well as tires for heavy-duty trucks and agricultural machinery, in order to meet the rising demand in Russia, the statement said. Sibur will transfer to the second JV, established with Pirelli and Tostechnologii, 40.1% stake, split equally, in Sibur-Russian Tyres.
Pirelli will gain control over a 10% stake in Sibur-Russian Tyres in exchange for technological and managerial contribution to the development of the tire holding.
After completion of the transfer of assets and restructuring, Sibur's share in Sibur-Russian Tyres will be 49.9%.
According to the statement, the three partners will also conclude agreements on the production and supply of synthetic rubber, where Sibur will supply raw materials to Pirelli and the two JVs on a long-term basis. The JVs will also provide for the joint production of new high-tech rubber products for the manufacture of modern high-quality tires.
In addition, Pirelli and Tostechnologii also plan to build a plant in the Samara region in the special economic zone of Togliatti to produce metal cord used in steel radial tires, the statement said. A plant to produce super large tires is also in the pipeline, the statement added.
