NEWS AND EVENTS
September 16, 2009
Uzavtosanoat gets US$62m loan for construction of engine plant
Fund for Reconstruction and Development of Uzbekistan issued US$62 million loan to Uzavtosanoat to construct engine plant in Tashkent region.
The loan issued for ten years, including seven-year grace period. The interest rate was not disclosed.
Uzavtosanoat and General Motors signed an agreement on creation of GM Powertrain Uzbekistan with charter capital of US$100 million. General Motors holds 52% in the enterprise and Uzavtosanoat possesses 48%.
The venture will produce 360,000 engines a year. It is expected that the venture will start its work on 30 March 2011. The joint venture will produce engines with volume of 1, 1.2, 1.4 and 1.5 litters.
The project with the cost of US$569 million, besides the fund’s loan, is financed due to own resource of Uzavtosanoat for US$298 million, loans of the Uzbek banks for US$157 million and foreign credits for US$52 million.
GM Powertrain Uzbekistan will supply major part of its products to GM Uzbekistan, an Uzbek-US carmaker. The part of engines will be exported. The localization level of automobile industry will increase from 53% to 75% after the launch of the plant.
Uzavtosanoat and South Korea’s Daewoo Motor created a joint venture - UzDaewoo Auto – on parity conditions with the charter capital of US$200 million. In 1996, the venture launched car production plant with the cost of US$650 million in Asaka city of Andijan region. The capacity of the venture is 200,000 cars per year.
In May 2005, Uzavtosanoat purchased 50% shares of Daewoo Motor in UzDaewoo Auto for about US$110 million.
General Motors and Uzavtosanoat completed process of creation of GM Uzbekistan on the base of UzDaewooAuto in the end of March 2008. The charter capital of new venture is US$266.7 million.
General Motors owns 25% shares and plus one share in the new venture and it can increase its share up to 40%. Currently, Uzavtosanoat possesses 75% shares in GM Uzbekistan.