TASHKENT (TCA) — South Korea company Young Shin Tech plans to organize production of gas cylinders for motor vehicles in Uzbekistan, Novosti Uzbekistana news agency reported.
The Uzbek and Korean sides have already signed a memorandum of understanding for this project and are currently considering its feasibility study and choosing location for the future plant.
“Representatives of Young Shin Tech plan to finalize all details of the project by the middle of 2016. The new production is likely to be located in one of Uzbekistan’s free economic zones, probably in the Navoi free industrial and economic zone. There is a preliminary agreement that the project will be with 100-percent Korean investments,” said the news agency’s source.
The new plant will produce cylinders for motor vehicles running on propane and butane. In the future, its products will be exported to neighboring CIS countries, mainly to Russia.
In mid-2014 the Navoi FIEZ opened an Uzbek-Italian joint venture, Avtosanoat – Landi Renzo, manufacturing equipment for motor vehicles running on compressed natural gas. The production has annual capacity of more than 25 thousand units of equipment.
Before the end of 2017, a total of 74 thousand motor vehicles are to be transferred to gas consumption in Uzbekistan. The government expects it will reduce the volume of exhaust gases discharged into the atmosphere by 5-8 thousand tons per year, as well as reduce greenhouse gas emission.
The government’s move has come as Uzbekistan has been lowering oil production in recent years.
