Peugeot Citroen and JSC Uzavtosanoat entered into agreement to establish a joint venture – Uzbekistan Peugeot Citroen Automotive. This partnership is aimed at building a production plant in Jizzakh SIZ. The plant will specialize in the production of full industrial cycle of light commercial vehicles under the brand "Peugeot" and "Citroën", intended for transportation of passengers and cargo. The authorized capital of the joint venture will amount to €30 million with equal distribution of shares. Total investment for this project amounts to approximately €130 million.
Peugeot Citroen will provide new technology, modern manufacturing processes and training of employees. The plant will operate in accordance with modern systems of "Peugeot Citroen" production management, quality, procurement, supply and sales. The new joint venture also plans to ensure the level of localization not less than 50% in the first year of production by attracting domestic manufacturers of automotive components.
Production capacity will make 16 000 cars per year, which will be sold in Uzbekistan and export markets near and far abroad.
Vice-President of Peugeot Citroen Group Christoph Bergeron said: "This project is fully in line with our strategic plan of "Push to Pass" (5-year development plan). This is a great opportunity for business development of the PSA Group in the segment of light commercial vehicles and profitable growth in the region. We appreciate the constructive dialogue with the Uzbek partners and personal support of the President of Uzbekistan Shavkat Mirziyoyev, which became a determining factor in the establishment of the joint venture".
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