BAKU, Azerbaijan, May 14
By Nargiz Sadikhova - Trend:
The agreement between Kazakhstan’s Ministry of Industry and Infrastructural Development and Azia Auto car-assembling plant was terminated due to the latter not carrying out taken liabilities within the agreement, Trend reports with reference to the ministry.
The ministry reminded that the agreement in question was signed among 19 other agreements on industrial assembling of motor vehicles with 10 ventures. Within the framework of these agreements, the companies undertook to master technological operations on welding, painting and assembling vehicles and increasing localization. However, Azia Auto Kazakhstan and its Azia Auto plant did not carry out their liabilities on industrial assembling within the agreement, the ministry said.
The ministry added that the corresponding agreement on industrial assembling was signed on Dec. 28, 2012 with Azia Auto, whish was take a responsibility on the organization of technological operations for welding and painting from Dec. 1, 2019; however, this obligation was also not fulfilled.
“The obligations required that manufacturers must put into operation technological equipment for welding and painting the body within 84 months (seven years). In order to extend the deadline for the obligations, Azia Auto asked the ministry to conclude a multilateral agreement on the industrial assembly of motor vehicles funds in early 2017, which was fulfilled by the ministry,” the ministry said.
The new agreement on the industrial assembly of motor vehicles required a report to be submitted each year on April 1 within which the manufacturer must submit information on the agreement implementation. Thus, the ministry said, another failure to fulfill obligations was already confirmed by the company’s report submitted in April 2020.
“In accordance with of the agreement, in case of non-fulfillment or improper fulfillment of the norms of the agreement, the authorized body shall send the manufacturer a notice of elimination of the violation within a month in writing, indicating the revealed violations, which was done on Apr. 11, 2020,” the ministry said.
The ministry also emphasized that agreement termination does not oversee complete halt of company’s operations and Azia Auto has the right to maintain its work in the future.
On May 13, 2020, CEO of the Azia Auto Yerzhan Mandiyev said that operations of Kazakhstan’s Azia Auto car-assembling plant may be suspended as a result of termination of the current industrial assembly agreement by Kazakhstan’s Ministry of Industry and infrastructural Development.
Azia Auto JSC was set up and passed its first state registration on December 20, 2002. Its parent enterprise is the car-assembly plant in the capital of the East Kazakhstan region’s Ust-Kamenogorsk.
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