Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan started the construction of a new plant for the production of Hyundai commercial vehicles.

The plant Hyundai-Namangan KD will be built in Turakurgan district of Namangan region.

As part of the ceremony of laying the stone of the plant, an investment agreement was signed on the implementation of a joint project.

It is expected that the new plant will begin to produce the first products in September 2019. The plant at the first stage will produce 400 trucks, minibuses and buses. Gradually, the capacity of the plant will be increased to 2,500 cars.

Localization of car production will be 50%.

The initiative of the new production belongs to the Korean companies Evergreen Motors and Posco Daewoo. The project is being implemented in Qoqand free economic zone. Funds in the amount of US$130 million will be directed to the project.

The agreement on organization of the production of Hyundai cars in Uzbekistan was reached during the visit of the President of Uzbekistan Shavkat Mirziyoyev to South Korea in 2017.