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Uzavtoprom, Daimler fail to agree on establishment of joint venture for bus production

Business Materials 1 August 2012 12:41

Uzbekistan, Tashkent, August 1 /Trend D.Azizov/

Joint Stock Company (JSC) Uzavtoprom and the German Daimler AG have not reached agreement on a joint venture for the production of large-capacity passenger buses on the chassis of Mercedes-Benz, a source in government circles told Trend on Wednesday.

He noted that, the sides parties failed to agree on the basic conditions of the joint venture.

A competition for works on loading, transporting, unloading and weighing of dismantled metalware and goods at Plant for the production of Mercedes-Benz buses in Tashkent is announced, Uzavtoprom said.

As previously reported, in May 2010 Uzavtosanoat and Mercedes-Benz Buses Central Asia, a wholly owned subsidiary of Daimler AG, have signed an agreement to establish joint venture for the production of buses on the chassis of Mercedes-Benz.

It was planned to organize the production of buses with designed capacity of 600 units per year at unused areas of the state aviation association TAPOiCH.

The authorized capital of the JV MB Central Asia was announced in amount of $8 million. Shares of the founders of the joint venture are - Mercedes-Benz Buses Central Asia GmbH and AK Uzavtoprom - amount to 51 and 49 percent respectively. The cost of the project was estimated at $31 million.

The project was approved by Uzbek President Islam Karimov's special decree in June 2010 and gave significant tax and customs privileges to the JV.

The first buses should be commissioned in September 2010.

However, the production of buses has not been started.

Currently there are about one thousand buses of the German company operating in Tashkent, which purchases worth about 120 million euros was carried out through German banks loans guaranteed by the government of Uzbekistan. All the buses belong to Mercedes-Benz Conecto with length over 12 meters and a capacity of more than eight tons.

Uzavtoprom was founded in 2004 on the basis of association Uzavtoprom.

Only three car factories operate in Uzbekistan, including GM Uzbekistan (former UzDaewooAuto), which produces cars, Auto-Uzbekistan, which produces trucks with capacity from 15 to 50 tons, LLC SamAvto (Samarkand), which produces passenger urban buses with a capacity for 37 people and small-tonnage trucks Isuzu.

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