Tashkent, Uzbekistan (UzDaily.com) -- UzAuto Motors launched a new press shop in Pitnak, Khorezm region. The production, deployed on the territory of 1.06 hectares, when reaching its maximum capacity, will allow annually from 12 thousand tons of sheet metal to produce up to 7 million units of various stamping body parts for the Damas and Labo models popular in Uzbekistan.

The project implemented will reduce the annual import volume by over US$20 million, ensuring production of Chevrolet Damas 114 car parts and Labo 152 car parts. The localization level of Damas will thus be increased from 31% to 45%, and Labo - from 11% to 45%.

Commenting on the event, the Chairman of the Board of Uzavtosanoat Shavkat Umurzakov said: “The launch of this project is fully consistent with the strategy of economic development of the republic in terms of ensuring sustainable growth and progress of the automotive industry. We are talking not only about the introduction of modern technologies, but also about the creation of hundreds of highly qualified jobs, and exactly where there is really an urgent need for them. Taking into account the general welfare of the region's population, about 30 employees previously included in the Iron Notebook and more than a hundred youth representatives from the Youth Notebook were employed in the press complex. The social component of business has always been and remains a priority for us along with profitability and efficiency, so I consider it important to emphasize that the new production will increase tax revenues to the local budget by 12 billion soums, which will make a tangible contribution to the development of the region. "

Paying attention to the export program, the launch of the new complex will increase the volume of exports of products of the Khorezm branch of UzAuto Motors JSC by 50%. If in 2020 Damas and Labo cars were exported in the amount of about US$7 million, then in 2021 this indicator is planned to increase to more than US$10 million and to US$15 million in 2022.

“A new unique press shop, located on the territory of the UzAuto Motors branch, is ideally integrated into the developed infrastructure of the region. In addition to access to the city roads of the regional center and intercity routes, the plant has its own railway line, which also minimizes logistics costs. However, the primary goal of the project, of course, is to increase competitiveness by reducing the cost of finished products. 266 components for Damas and Labo will be produced locally by this workshop, which will immediately increase their localization by 25%,” said Rustam Rajabov, General Director of UzAuto Motors.

If in 2018 it was possible to increase the production capacity of the UzAuto Motors plant in the Khorezm region from 40 to 70 thousand cars per year, then in 2022 this figure is planned to be increased to 100 thousand. The cost of finished products will rise from 4.9 trillion soums to 6.6 trillion soums, as a result of which 1.3 trillion soums will be transferred to the budget.

It is noted that the total amount of investments in the project has reached 48 million US dollars, allocated from the own funds of UzAuto Motors JSC. At the same time, the annual production volume is planned at the level of US$40 million, and the net profit will amount to US$13 million.