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Uzbekistan creates joint venture for production of car spare parts

Business Materials 11 August 2015 19:58 (UTC +04:00)
Uzavtoprom Joint Stock Company (JSC) and the South Korean INZI AMT have set up UzAuto-INZI joint venture (JV) with registered capital of $10 million in Uzbekistan for the production of aluminum parts for the localization of production of the plant of General Motors Powertrain-Uzbekistan (GMPT-Uzbekistan) car engines

Tashkent, Uzbekistan, Aug. 11

By Demir Azizov- Trend:

Uzavtoprom Joint Stock Company (JSC) and the South Korean INZI AMT have set up UzAuto-INZI joint venture (JV) with registered capital of $10 million in Uzbekistan for the production of aluminum parts for the localization of production of the plant of General Motors Powertrain-Uzbekistan (GMPT-Uzbekistan) car engines, representative of the ministry of economy of Uzbekistan told Trend.

The source said that creation of the joint venture with equal equity participation was approved by government decree, which defines the conditions of implementation of the project worth $38.4 million and provides customs benefits on the import of goods for the construction of production, the allocation of land for the construction of an area of ​​6.9 hectares including 5.9 hectares on the territory of GMPT-Uzbekistan free from the development was approved.

Until March 31, 2016 UzAuto-INZI joint venture was authorized for carrying out construction and installation work in parallel with the design.

Commissioning of the production with design capacity of 3.2 million units of aluminum parts by high-pressure diecasting is scheduled for early 2017.

The project is included in the investment projects program on modernization, technical and technological renewal of production for 2015-2019 adopted in Uzbekistan in March 2015.

It was previously reported that the joint venture GM Powertrain-Uzbekistan was established in 2008 by Uzavtoprom and the corporation General Motors with statutory fund of $100 million. GM's share in the joint venture is 52 percent, while the share of Uzavtoprom is 48 percent.

In November 2012, GMPT-Uzbekistan commissioned a plant for production of automotive powertrain with design capacity of 225,000 engines per year and worth $521.8 million.

Currently, the automotive industry of Uzbekistan has over 200 companies and organizations included in the structure of Uzavtoprom JSC.

The structure of Uzavtoprom has also 25 large and 160 small suppliers of components for car assembly production.

Edited by CN

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