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Uzbek-German JV assembles agriculture equipment in Tashkent

Business Materials 4 June 2010 17:08 (UTC +04:00)

Uzbekistan, Tashkent, June 4 / Trend D. Azizov /

CLAAS Central Asia Investment GmbH (Germany) and Tashkent Tractor Plant (TTZ) created a joint venture Uz CLAAS Agro assembly of agriculture equipment, a message said.

The company plans to produce 100 units by late 2010. About 20 harvesters will be used for export to neighboring countries.

In the first stage, the venture will assemble equipment from SKD components, but the localization level will reach 50 percent in 2013.

Uz CLAAS Agro plans to create subsidiary Uz CLAAS Service to ensure post-sales services to agriculture equipment. The company will have service centers in all regions of Uzbekistan.

The sides signed an agreement on foundation of the joint venture with the charter capital for 1 million euros in February. The Uzbek president Islam Karimov approved the agreement with his resolution in March.

TTZ holds 51 percent share in the venture, while the German side will possess 49 percent stake. The sides are planning to raise authorized capital to 3 million euros, keeping current ratio of shares.

The preliminary capacity of the venture will be 500 units of agriculture equipment a year, including 200 units of universal cultivating tractors and 170 units of wheat harvesters, and other equipment.

Tashkent tractor plant produces three models of tractors with ten modifications of the capacity from 30 to 60 horsepower, as well as four types of trailers with carrying capacity from 0,5 up to five tons. The company plans to acquire and produce tractors of new generation with capacity of 120 horsepower.

About 82.75 percent are owned by the state, Germany's AUS-Trade GmbH - 6,07 percent, the labor collective of -3.51 percent, the rest of the minority shareholders - 7,68 percent in the structure of the share capital (3.96 billion soums).

The design capacity is 12,000 tractors and more than 13,000 trailers. The products are sold domestically and exported to the CIS countries, Afghanistan and Turkey.

In 2009, production of tractors in the TTZ increased by 12.3 percent - up to 2,737 units. In 2010, the company plans to produce 3,000 cars.

In 1998, the company Uzselhozmash-holding, TTZ and CaseNewHolland created JV UzKeysTraktor on the basis of the Uzbek enterprises. Until 2008, JV carried out a large-wheel assembly of universal tractors "MXM-140" with engine output of 144 horsepower. During this time about 500 cars of this model were assembled.

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