KIA plans to move to the implementation of the second phase of the project for the production of cars in Jizzakh region
06/07/2022 09:20
KIA plans to move to the implementation of the second phase of the project for the production of cars in Jizzakh region
06/07/2022 09:20
Tashkent, Uzbekistan (UzDaily.com) -- On 5 July this year, Deputy Prime Minister - Minister of Investments and Foreign Trade Sardor Umurzakov received the President of KIA Russia & CIS (KIA Russia and CIS) Sang Gwon Jong.
KIA Motors is one of the largest Korean car manufacturers headquartered in Seoul. The company was founded in December 1944. Part of the Hyundai Motor Group.
During the meeting, it was noted that for Uzbekistan, the dynamic and sustainable growth of the automotive industry is one of the priorities in the development of the country’s economy. A special role in this is played by successful cooperation with KIA Motors, whose products are met with high interest in the Uzbek market. In this context, the company’s management announced its intention to continue strengthening its position in the Uzbek market through the implementation of new projects and expanding the production line.
A joint project with KIA to assemble cars using SKD method at a plant in Jizzakh started in 2021. The cost of the first phase was US$12.6 million. The multi-brand plant, which employs 250 specialists, assembles KIA, Renault and Lada cars. Production capacity - 25 thousand units per year. Since the launch of the plant, more than 6 thousand cars have been produced. As for KIA, 8 models of this brand are already presented on the Uzbek market. However, as noted at the meeting, there is a huge reserve for both expanding the model range and increasing production volumes.
As part of the negotiations, it was emphasized that the launch of the second phase of the project will increase the annual production capacity to 100,000 vehicles and create 3,000 new jobs. According to the manufacturer’s plans, localization will be increased to 30 percent, which will positively affect the cost of cars. Also, in cooperation with local companies, the production of component parts will be mastered.
After discussing all aspects of the project, the parties agreed on further actions to promote its practical implementation. As a result, the parties expressed their readiness to continue a regular and constructive dialogue to discuss and resolve all emerging issues.
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