...

KIA intends to implement new projects, expand production line in Uzbekistan

Uzbekistan Materials 6 July 2022 12:11 (UTC +04:00)
KIA intends to implement new projects, expand production line in Uzbekistan
Natavan Rzayeva
Natavan Rzayeva
Read more

BAKU, Azerbaijan, July 6. KIA Russia & CIS company, subsidiary of KIA Motors, intends to continue strengthening its position in the Uzbek market through the implementation of new projects and expanding the production line,Trend reports via Uzbek Ministry of Investment and Foreign Trade.

In this regard, Deputy Prime Minister - Minister of Investments and Foreign Trade Sardor Umurzakov received the President of KIA Russia & CIS Sang Kwon Jong.

During the meeting, it was noted that for Uzbekistan, the dynamic and sustainable growth of the automotive industry is one of the priorities in the development of the country's economy, while KIA Motors cars remain very popular in the Uzbek market.

A joint project with KIA to assemble cars using a SKD method at a plant in Jizzakh region started in 2021. The cost of the first phase was $12.6 million. The multi-brand plant, which employs 250 specialists, assembles KIA, Renault and Lada cars.

Production capacity of the plant is 25,000 units per year. Since the launch of the plant, more than 6,000 cars have been produced.

As it was noted at the meeting, there is a huge potential for both expanding the model range and increasing production volumes in Uzbekistan.

It was emphasized that the launch of the second phase of the project will increase the annual production capacity to 100,000 vehicles and create 3,000 new jobs. According to the manufacturer's plans, localization will be increased to 30 percent, which will positively affect the cost of cars. Also, in cooperation with local companies, the production of component parts will be mastered.

After discussing all aspects of the project, the parties agreed on further actions to promote its practical implementation. As a result, the parties expressed their readiness to continue a regular and constructive dialogue to discuss and resolve all emerging issues.

Tags:
Latest

Latest