BAKU, Azerbaijan, July 23
By Nargiz Sadikhova - Trend:
Kazakhstan’s AZIA AVTO JSC has approved the construction schedule of a full cycle auto production to ensure welding and body painting facilities launch in 2021, Trend reports with reference to the company.
The company said it has reached an agreement on a financial partnership that will allow AZIA AVTO JSC to fulfill its obligations under the industrial assembly agreement.
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 with Kazakhstan’s Ministry of Industry and infrastructural Development by the latter.
However, the ministry later said that the agreement was terminated due to the plant not carrying out taken liabilities within the agreement.
The project for construction of a full cycle auto manufacturing cluster in Ust Kamenogorsk city is being implemented in cooperation with Avtovaz company.
The approved investment plan will speed up the construction process and allow to put new facilities into operation no later than 2021. Work on the construction site of the project is currently underway.
To date, AZIA AVTO has invested $74 million of its own funds in the project. Completion of the construction’s first stage will expand the production area to 93,000 square meters.
The new capacities will provide for annual production of 50,000 vehicles, the level of localization of which will exceed 50 percent.
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