Uzavtosanoat and PSA Groupe to reconsider the project of the automobile plant

Tashkent, Uzbekistan (UzDaily.com) -- Uzavtosanoat and PSA Groupe (France) will reconsider a project concept for construction of a joint automobile plant in Jizzakh region. This was reported by the press service of Uzavtosanoat.

The company’s statement said that in accordance with the agreement on establishment of a joint venture between Uzavtosanoat and PSA Groupe, an investment project is being implemented in Jizzakh region to organize the production of light commercial vehicles.

The project envisages development of the production of 2 types of light commercial vehicles intended for the carriage of passengers and goods.

“At present, construction and installation works are being completed at the facility. Relevant contracts for supply of technological and engineering equipment have been concluded,” the company emphasized.

“At the same time, due to some unforeseen changes in the source data, the partners jointly carry out work to change the concept of the project and optimize the economic parameters,” Uzavtosanoat said.

The company noted that further details of the project will be informed on an additional basis.

In 2017, Uzavtosanoat and Peugeot Citroen Group signed an agreement on the establishment of a joint venture for the production of light commercial vehicles in Uzbekistan.

The company will produce light commercial vehicles. The capacity of the enterprise will be 16,000 cars per year. Products will be supplied to the markets of Uzbekistan and foreign countries.

Uzbekistan Peugeot Citroen Automotive JV will specialize in the production of a full industrial cycle of light commercial vehicles under the Peugeot and Citroën brands intended for the carriage of passengers and goods.

Uzbekistan Peugeot Citroen Automotive will produce Peugeot Expert and Peugeot Boxer cars.

The authorized capital of Uzbekistan Peugeot Citroen Automotive will be 30 million euros. An investment of 130 million euros will be channeled into the project.

The French side will provide new technologies, modern production processes and employee training.

The plant will operate in accordance with modern Peugeot Citroen systems for managing production, quality, procurement, supply and sales systems.

It is expected that the localization level will be at least 50% from the first year of production. To localize the joint venture will attract Uzbek companies.