SC Uzavtosanoat and Groupe PSA sign a Joint Venture agreement to produce light commercial vehicles in Uzbekistan
Groupe PSA and SC Uzavtosanoat decided to jointly create an equally owned Joint Venture (JV) - Uzbekistan PCA. This partnership aims at building a production plant in the Free Industrial Zone of Jizzakh, located 200 km from the Tashkent, in Uzbekistan, to produce Peugeot and Citroën LCVs, for passenger and freight carriage. The Charter capital of new JV will be around 30 million euros with equal shareholding. Global investments represent around 130 million euros.
Groupe PSA will provide new technologies, intellectual property, modern production processes and training to employees. The plant will operate in accordance with the modern systems of Groupe PSA in production, quality, purchasing, supply and sales. Furthermore, the joint venture considers at least 50% of parts localization in the first year of production, by attracting domestic component parts manufacturers - 30 large factories owned by SC Uzavtosanoat and more than 160 small and medium enterprises.
Production capacity is estimated up to 16 000 vehicles per year, and will be sold in Uzbekistan and exported to foreign countries. With a population over 32 million, there is a huge potential for further development of industrial production and growth of the automotive market in Uzbekistan.
“This LCV segment was the only non-occupied vehicle segment in Uzbekistan”- noted Mr. Yusupov Rustam, Deputy Chairman of the board of SC Uzavtosanoat – “So this project is a significant qualitative leap in the development of the domestic automotive industry. And more globally, along with the increase of employment, this joint venture will positively contribute to the profitable growth of the Uzbekistan automotive industry”
Christophe Bergerand, Eurasia Vice-President for Groupe PSA commented: “This project is fully in line with our Push to Pass plan and this is a great opportunity for Groupe PSA to develop our LCV business and profitable growth plan in the Region. We appreciate the established constructive dialogue with the Uzbek teams and personal support of the President of Uzbekistan Shavkat Mirziyoev, which was a determining factor in the creation of the joint venture".
- Build a new plant in the Free Industrial Zone of Jizzakh in Uzbekistan
- Exclusive license to produce LCVs in Uzbekistan with a production capacity up to 16 000 vehicles per year for local and export markets from 2019
- Project based on a Groupe PSA platform & technologies and on SC Uzavtosanoat supplier network