Uzbekistan, Tashkent, Nov. 16 / Trend D. Azizov /
Uzavtosanoat company and the U.S General Motors officially commissioned a car engine plant worth $522 million in Tashkent on Tuesday, GM said.
The plant was constructed by GM Powertrain Uzbekistan.
It was created by the U.S General Motors and the Uzavtoprom company with a capital worth $100 million in late 2008. GM share in the authorized capital of the joint venture is 52 percent, the share of the Uzbek side - 48 percent.
The construction of the plant was launched in 2009.
The production capacity is designed to produce 225,000 - 270,000 of fuel-efficient Ecotec 1.2L and 1.5L engines. They will be used in the production of light vehicles.
The company said that both engines use cast-iron block and aluminum head. The engines comply with Euro V environmental standards.
It is planned to produce the first 2,000 engines till late 2011.
The main consumer of GM Powertrain Uzbekistan will be JV GM Uzbekistan (former UzDaewooAuto, Asaka, Andijan region). Some engines are planned to be produced for export.
The project was financed by the joint venture's funds worth $ 298 million, the loan of the Uzbek Reconstruction and Development Fund - $14.9 million, the loan of Uzbek commercial banks worth $156.9 million, foreign investments and loans - $ 52 million.
The joint venture plans to produce 125,000 car engines in 2012, 142,000 in 2013, 205,000 in 2014, to reach full capacity in 2015.
GM owns 25 percent stake in the authorized capital of the joint venture, the Uzbek side - 75 percent. The design capacity is 250,000 cars per year.
GM Uzbekistan increased production by 6.2 percent up to 217,733 cars in 2010 compared to 2009.