Agricultural engineering industry to emerge amid impending new enterprises
12/07/2019 19:56
Agricultural engineering industry to emerge amid impending new enterprises
12/07/2019 19:56
Tashkent, Uzbekistan (UzDaily.com) -- On 12 July 2019, President Shavkat Mirziyoyev visited the Tashkent Plant of Agricultural Machinery.
In the agricultural industry, machinery is quite instrumental in ensuring quality and efficiency. I the past, due to insufficient attention to the production of a wide range of agricultural equipment and deep localization, no more than 2-3 percent of the fleet of vehicles annually used to be updated. Production stopped at the Tashkent Plant of Agricultural Machinery, its buildings and manufacturing lines were abandoned.
The President’s trip to this venue marks the dawn of a major transformation. New enterprises are intended to be commissioned here, affording impetus to the development of full-fledged agricultural engineering industry.
In particular, to increase the level of localization and import substitution, the plans envisage the establishment of five enterprises.
They include a foundry production line worth 42 million USD. This enterprise, being created on the basis of one of the empty buildings with an area of 3 hectares, will be used for high-precision casting of 47 thousand tons of metal products meeting international requirements.
The Head of the state visited this building.
“Foundry capacities are extremely crucial for machine building enterprises. Without them, neither localization nor expansion of the product range and cost reduction are possible. The commissioning of these enterprises will increase the competitiveness of our equipment, and farmers will receive affordable goods,” Shavkat Mirziyoyev suggested.
Another 4 projects totaling US$24 million are aimed at mastering the production of transmission shafts, wheels, cabs and fasteners.
As a result of the implementation of these projects, the level of localization in the industry will be increased to 60 percent, a reduction in production costs by 32 percent and imports by 16 million USD a year are expected.
At the same time, the new capacities will supply components not only to the enterprises of Uzagrotekhsanoatholding JSC, but also to manufacturers of cars, trucks and buses that are part of the Uzavtosanoat system, on the basis of industrial cooperation.
The President urged to speed up the implementation of projects and insisted that the enterprises be put into operation as early as next year.
Shavkat Mirziyoyev familiarized himself with the technological process in the workshops for assembling tractors and welding units, inspected the production at the Uzbek-German joint venture UzClaasAgro. The head of our state gave instructions on increasing the level of localization, mastering the release of new types of products and components.
While visiting the Tashkent Plant of Agricultural Machinery on 12 July, President Shavkat Mirziyoyev chaired a meeting on the development of agricultural engineering industry.
The introduction of market mechanisms in agriculture, increase in the purchase prices for grain and cotton, and the expanding exports of fruits and vegetables have had a positive effect on the growth of the income of our dehkans and farmers. Owing to this, they strive to acquire modern technology, improve labor efficiency and raise product quality.
In 2018, farmers received 11.5 thousand units of equipment. Last year, agricultural machinery was exported for US$10 million and for US$15 million in the first half of this year.
However, this is far below the existing potential and demand. Today, agriculture needs more than 11 thousand units of equipment, including 4 thousand tractors, 500 combines and over 5 thousand of hanging and trailing machinery annually. In addition, this demand will increase further, taking into account the planned reclamation of 263 thousand hectares of land until 2022 and more than 1 million hectares until 2025.
Today, 46 percent of the equipment has exceeded its useful life or is worn out, while 97 percent of the machinery at the disposal of farmers is intended for cotton and grain growing.
The issues discussed at the meeting included those related to furthering the agricultural machinery production and expanding the range of products and service levels.
From 1 October 2019, this sphere, like other sectors of the economy, will be deprived of tax incentives, which requires more active work from core businesses.
It was noted that the primary tasks of the industry’s enterprises are the production of equipment on the market, reduction of its costs and enhancement of localization.
The President pointed out that there are opportunities to increase from 32 to 56 percent the level of localization of such major components as cabs, control systems, wheels, gearboxes, suspension systems, and cut costs by 30 percent, as well as diminish annual imports by 20 million USD thanks to cooperation among domestic enterprises.
Instructions were given to introduce sustainable financial mechanisms for providing farmers with agricultural machinery, improving equipment service, and supplying spare parts.
The task was voiced to perfect the system of certification of agricultural machinery, to expand the export of not only finished products, but also services. Particular attention was paid to training qualified specialists in the production of modern equipment and its maintenance.
“We need competitive equipment, we need added value. System enterprises must employ thousands of people. Who is able to achieve their goals today? Specialists are. How will this be achieved? With intelligence, knowledge, hard work,” the President stressed.
Responsible officials provided information on the implementation plans for the tasks set at the meeting.
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