Uzbekistan, Tashkent, March 7 / Trend D.Azizov /
JSC Chirchiqqishloqmash and the German Lemken Gmbh & Co. KG have established a joint venture Lemken Chirchiq to produce agricultural machinery, a source in government circles told Trend on Wednesday
According to the source, the joint venture will manufacture tillage equipment based on Lemken technology, including ploughs of various modifications and other types of agricultural machinery. The project cost is estimated at $5 million.
Under the agreement, Lemken should provide the Uzbek side with licenses and technical assistance in the production of agricultural machinery at Lemken Chirchiq.
In February, 2012 the Uzbek government approved this project by a special resolution whereby Lemken Chirchiq JV is granted a number of tax and customs concessions.
Chirchiqqishloqmash, whose controlling interest belongs to the state, specialises in the production of rigs for agricultural machinery. Lemken Chirchiq is the second joint venture with German capital established in the field of agricultural engineering in Uzbekistan.
In 2010 Tashkent Tractor Plant and German company CLAAS formed a joint venture Uz CLAAS Agro for the production of agricultural machinery.
The venture is engaged in assembling combine harvesters and versatile tractors. According to the company, about 900 units of agricultural machinery produced in the country to German quality standards were delivered over two years to farmers in Uzbekistan. These include the combine harvester Dominator 130, Tucano 430m tractors and Axos 340 with 100 and 145 horsepower.