BAKU, Azerbaijan, Jan. 15
By Fakhri Vakilov - Trend:
Uzbekistan’s Uzavtosanoat car manufacturing company, Chinese Sinotruk International Investment Limited and German MAN Truck & Bus SE signed an agreement to establish a joint venture (JV) UZ Truck and Bus Motors based on JV MAN Auto-Uzbekistan, Trend reports citing Uzavtosanoat’s press service.
As a result, Sinotruk became one of the founders of MAN Auto-Uzbekistan JV, having made foreign direct investment in the authorized capital of the enterprise in the amount of $12.1 million.
“The choice of such a partner as Sinotruk is due to important factors - popularity of this equipment in the market of Uzbekistan and Central Asia, availability, quality and a wide range of products,” the company said.
Investments will be directed at increasing production capacities from 3,000 to 6,000 units of commercial vehicles per year, mastering the production of new models and localizing components. The project will create more than 100 additional jobs, increase export potential of the enterprise, as well as gradually increase the level of localization of commercial vehicles to 50 percent.
It is expected that the solution will serve to saturate the market with more budget and high-quality trucks, increase competition between different brands within the country, as well as master the production of machinery with a carrying capacity of 5 to 70 tons, including mining dump trucks.
Sinotruk manufactures commercial vehicles under various brands of small, medium and heavy trucks, as well as special purpose trucks. The company ranks first in China in terms of production and export of heavy trucks. Sinotruk's turnover last year amounted to $15.7 billion; the company has more than 20 factories in China and 8 enterprises abroad.
Since 2009, 25 percent of Sinotruk has been owned by the German concern MAN Truck & Bus SE, co-founder of JV MAN Auto-Uzbekistan, established in 2009.
The opening of the assembly plant for the production of heavy vehicles JV MAN Auto-Uzbekistan took place in 2012. Currently, the company also produces MAN city and intercity buses.
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