Automobile Industry - The Times Of Central Asia

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Daewoo To Invest $730 Million in Turkmenistan

South Korean company Daewoo Engineering & Construction has won a tender to build a fertilizer plant in Turkmenistan. The project is estimated to cost a trillion won (about $730 million). According to the company, the new plant will be located in Turkmenabat, 450 km east of Ashgabat. It will have an annual capacity of 350,000 tons of phosphate fertilizer and 100,000 tons of ammonium sulfate, and will include additional auxiliary facilities. After the completion of the main contract, final data on the contract's value and implementation terms will be published. The company has stated that implementing the project will allow Daewoo E&C to strengthen its presence in Central Asia and expand its activities in the petrochemical and agricultural sectors, infrastructure, and urban projects. In the future, the company intends to offer environmentally friendly technological solutions to further cooperate with Turkmenistan. Daewoo E&C noted that winning the tender was possible thanks to the support of the South Korean government, including during the official visit of President Yun Seok Yeol to Turkmenistan in June. The company's Chairman, Jeong Won-ju, also met with the Chairman of the People's Council of Turkmenistan, Gurbanguly Berdimuhamedov, in November 2022 during his visit to South Korea. The two sides signed a memorandum of understanding, cementing an agreement on close cooperation. Jeong Won-ju has visited Turkmenistan three times since then, which helped strengthen ties and successfully conclude negotiations. Daewoo E&C is aiming to become a leader in the global EPC (engineering, procurement, and construction) market. “We strive to participate in projects that contribute to a sustainable future,” a company representative stated. Turkmenistan is implementing several major projects with the participation of South Korean companies. Hyundai Engineering has agreed with state-owned Turkmengas to expand the Galkynysh gas field. This project includes the construction of a fourth gas desulfurization facility, making it the largest in the country's history. Korean companies have also been actively constructing and developing an oil refinery in Kiyanly. Projects to create “smart cities” are also being discussed.

Accelerating Growth: Uzbekistan’s Automotive Industry Continues to Expand

Uzbek-Singaporean company Technologies of Real-Time plans to start producing components for such famous brands as BYD, Chery, Changan, Geely, and Dongfeng, it was announced during President Mirziyoyev's visit to the Tashkent region. The project will cost $115 million and is planned to be realized by 2025. As a result, 43 new jobs will be created, and production capacity will increase from 180,000 to 280,000 units annually. The automobile industry is a critical component of the Uzbek economy, with car production growing almost threefold in recent years. By the end of this year, production volume is expected to reach 460,000 units, and by 2030, it is planned to increase this figure to 1 million. Two new private enterprises and international brands have been brought in to eliminate monopolies and promote competition in the industry, with more than 20 plants in the country producing a wide range of cars and trucks. In response to the growing demand for spare parts, more than 300 enterprises have joined a cooperative network, including Technologies of Real-Time in Zangiat. In November 2019, the President familiarized himself with the products of this enterprise at an international industrial fair, and recommended its further expansion. As a result, extensive modernization has been carried out, and new equipment from China, Russia, South Korea, Japan, and the United States has been installed in 12 workshops. Currently, more than 750 types of spare parts for 118 car models are produced here. The enterprise has created 220 jobs. Products are supplied to the domestic market, including to the Uzavto Motors plant in the Khorezm region, where 773,000 spare parts for Damas and Labo were shipped. Spare parts are also in demand abroad: last year, exports amounted to $3 million, including deliveries to Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan.

Turkmenistan and Tatarstan Discuss Trade and Debt Issues

On August 27, at a meeting of the Turkmenistan-Tatarstan joint working group on trade-economic, scientific-technical, and cultural cooperation in Kazan (Republic of Tatarstan, Russian Federation), it was announced that Turkmenistan and Tatarstan's 's trade turnover has increased by 13.4%, amounting to $52.3 million, largely due to the import of products to Turkmenistan. However, the Turkmen Minister of Finance and Economy, Serdar Joraev, stated that this is still two times lower than 2019's numbers. Deputy Prime Minister and Minister of Industry and Trade of Tatarstan, Oleg Korobchenko confirmed the overall decline in trade turnover, with both parties calling for a joint solution. During the meeting, the participants discussed Turkmenistan's debt, which arose due to problems with inter-bank settlements. Whilst both parties stated that this issue is under control and being resolved with the participation of the Central Banks of Turkmenistan and Russia, the total amount of debt remains unreported. Tatarstan companies in the fields of mechanical engineering and oil refining supply equipment and goods in Turkmenistan. In 2020, 852 Kamaz trucks, the second high-speed A145E marine motor ship, and more than $8 million worth of medicines and medical supplies were delivered to Turkmenistan from Tatarstan.

Kyrgyz-Uzbek Automobile Plant Imports Components from Uzbekistan

On July 5, Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Akylbek Japarov visited the northern Chui region to inspect the Tulpar Motors assembly plant, a joint Kyrgyz-Uzbek enterprise for the manufacture of Chevrolet and Isuzu vehicles. Construction of the plant began in May 2023 and the first car rolled off its assembly line in May 2024. Already in operation, the plant will be officially opened in July-August by the president of Kyrgyzstan. According to plans, within five years, the number of employees at the plant will reach 1,400 and the total investment in the project, will amount to $110 million. During the first year, Uzbekistan’s UzAuto Motors will invest $50 million in the assembly of 10,000 cars, beginning with the Chevrolet Nexia R3. At the initial stage, components will be provided by Uzbekistan but thereafter, will be produced inhouse to enable the Kyrgyz plant's manufacture of some 20,000 vehicles per year. During his visit, the head of the Cabinet of Ministers noted that the cars, trucks, and buses produced by the plant will meet the demand in Kyrgyzstan and be available for export to other Central Asian countries.

Chinese Company to Build Automobile Plant in Uzbekistan for $1.5 bln

China Xiaou Group intends to launch a large automobile manufacturing complex in the Ferghana region of Uzbekistan, the Khokimiyat (regional authority) of the Ferghana press service has reported. The agreement on constructing a large automobile complex with China Xiaou Group for $1.5 billion, at the expense of direct Chinese investments, was signed during a visit by a delegation of officials and businessmen from the Ferghana region to China. It is reported that in the first stage of the project, a $50 million investment is planned to set up production lines for 60,000 electric, hybrid, and special cars per year. In the second phase, $350 million will be invested, and $1.1 billion in the third phase. Most of the components will be localized, and the number of cars produced will be increased to 110,000 per year. The project is planned to be fully completed within five years.

Kazakhstan and Central Asia Present Investment Opportunities to Swedish Parliament

The first business seminar on the investment climate and business opportunities in Kazakhstan and Central Asia was held last week in Stockholm, Sweden. As reported by Kazakhstan’s Foreign Ministry, the event was attended by Chairman of the Sweden–Central Asia Friendship Group of the Riksdag (Swedish Parliament) Bjorn Soder, Ambassador of Uzbekistan to Sweden Nodir Ganiev, Ambassador of Sweden to Kazakhstan Ewa Polano, Ambassador of Sweden to Uzbekistan Tomas Danestad, Chairman of the Swedish Chamber of Commerce for Eurasia Heinz Sjogren, and representatives of Swedish ministries and large companies. Speaking at the event, Bjorn Soder noted the strategic importance of enhancing cooperation between Sweden’s and Central Asia’s public and private sectors. Attention was drawn to Central Asia’s huge potential for strengthening trade and economic relations with Sweden, and the limitless prospects for expanding investment partnership. Ewa Polano and Tomas Danestad shared their views on the dynamic development of Central Asia, emphasizing that Kazakhstan and Uzbekistan are the “core-countries” of the region. Referencing growing competition in the region, the two ambassadors called on the Swedish business community to invest in Central Asia, as well as expand its presence in the region. Representative of Scania AB, Fredrik Wijkander, outlined the Swedish company’s presence in Kazakhstan where it has been operating since 2007. In 2023, the assembly of Scania trucks was launched in Saran, in the Karaganda region, and in 2024, Scania AB set up Scania Central Asia as an independent business unit in the region with its head office in Almaty. Fredrik Wijkander said that despite the high competition from Chinese automakers, the Swedish company will continue to strengthen its presence in Central Asia and expand production. To this effect, he confirmed plans for the assembly of trucks and buses, and establish local production in Kazakhstan.