BAKU, Azerbaijan, May 24
By Klavdiya Romakayeva - Trend:
The launch of the new press workshop will increase the volume of exports of products of the Khorezm branch of UzAuto Motors JSC by 50 percent, Trend reports referring to UzAuto Motors JSC.
It is reported that UzAuto Motors JSC announced the opening of a new press shop in the Pitnak district of the Khorezm region. The production, deployed on the territory of 1.06 hectares, when reaching its maximum capacity, will allow production annually from 12,000 tons of sheet metal up to seven million units of various stamping body parts for the Damas and Labo models popular in Uzbekistan.
According to the information, the project implemented on behalf of the President of Uzbekistan Shavkat Mirziyoyev during his visit to the Khorezm region in December 2020, as well as the Resolution of the President of Uzbekistan on measures to further improve management and accelerate the development of the automotive industry for 2017-2021, will reduce the annual import volume by over $20 million, ensuring the production of Chevrolet Damas 114 car parts and Labo 152 car parts. Also, the localization level of Damas will thus be increased from 31 percent to 45 percent and Labo - from 11 percent to 45 percent.
Commenting on the event, the Chairman of the Board of UzAuto Motors JSC Shavkat Umurzakov stressed that the new production will increase tax revenues to the local budget by 12 billion soums ($1.1 million), which will make a tangible contribution to the development of the region.
In addition, the launch of the new complex will increase the volume of exports of products of the Khorezm branch of UzAuto Motors JSC by 50 percent. Thus, if in 2020 Damas and Labo cars were exported in the amount of about $7 million, then in 2021 this indicator is planned to increase to more than $10 million and $15 million in 2022.
General Director of UzAuto Motors Rustam Razhabov noted that the new unique press shop, located on the territory of the UzAuto Motors branch, is ideally integrated into the developed infrastructure of the region.
“However, the primary goal of the project is to increase competitiveness by reducing the cost of finished products. Some 266 components for Damas and Labo will be produced locally by this workshop, which will immediately increase their localization by 25 percent,” he said.
He added that if in 2018 it was possible to increase the production capacity of the UzAuto Motors plant in the Khorezm region from 40,000 to 70,000 cars per year, then in 2022 this figure is planned to be increased to 100,000. Also, the cost of finished products will rise from 4.9 trillion soums ($463 million) to 6.6 trillion soums ($623 million), as a result of which 1.3 trillion soums ($123 million) will be transferred to the budget.
It is noted that the total amount of investments in the project has reached $48 million, allocated from the funds of UzAuto Motors JSC. At the same time, the annual production volume is planned at the level of $40 million, and the net profit will amount to $13 million.
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