nCa Report
The automaker Jizzakh in Uzbekistan is going to invest USD 550 million during the period 2024-2026 to raise the capacity of building hybrid cars and electric vehicles.
The automobile plant Jizzakh has now entered the third state of its development, embarking on the production of hybrid cars and electric vehicles from CKD (completely knocked down). It means that the vehicles will be assembled entirely in Uzbekistan.
In the second stage of the development of the ADM Jizzakh, USD 315 million were invested, leading to a turnover in excess of USD 1.2 billion. The plant employs a work force of 4500.
In the third stage, which will cover the period 2025 to 2027, there will be the investment of USD 550 million in various projects including production of hybrid and premium cars, and commercial vehicles based on CKD.
Part of the investment will go toward the establishment of a research centre, localization companies, the construction of a press shop, and the organization of production for lighting systems and car seat frames.
It is estimated that the turnover will quadruple by 2027, reaching USD 4.7 billion. The budget revenues are expected to soar to $700 mn, positioning the automobile plant among the top 5 largest taxpayers in Uzbekistan.
The area of the automobile plant is set to expand to 170 hectares, accommodating the doubling of its workforce to 10,000 employees. Additionally, with the development of production for 348 out of 972 types of components, the level of localization is anticipated to rise from 30% to 45%, further bolstering the plant’s self-sufficiency and economic impact.
The Limited Liability Company “ADM Jizzakh” was established in 2021. It has produced 36,000 cars across 23 different models under brands such as Kia, Chery, and Haval. With an investment of $234 mn and the creation of 1,800 jobs, the company has expanded its operations significantly over the past three years. The introduction of high-tech assembly processes, including stamping, welding, painting, and assembly, has allowed for the production of high-quality vehicles.
The plant boasts advanced equipment from South Korea, Japan, and Germany, including 30 robots, achieving a 33% automation rate. Plans are underway to increase localization and strengthen cooperation with domestic industrial enterprises, with a target of localizing 348 types of components by 2027. Already, partnerships have been formed with 21 local enterprises to support this initiative.
With a current production capacity of 100,000 passenger cars annually, ADM Jizzakh aims to expand its workforce by 3,000 employees. To enhance the quality of its vehicles, the company has enlisted skilled specialists from South Korea, India, China, and Vietnam. Additionally, a program for advanced training of engineers in South Korea and China has been initiated, with the first group of 50 engineers set to undergo training this year. /// nCa, 11 April 2024 [major portion of this report drawn from Daryo news, image credit press service of President of Uzbekistan]