2 May 2023 15:22

Azermash and Uzavtoprom start building car plant in Azerbaijan totaling nearly $52 mln

BAKU. May 2 (Interfax) - OJSC Azermash (Azermash) and Uzbekistan's JSC Uzavtoprom (Uzavtosanoat) have jointly started building an automobile plant in the east of Azerbaijan.

The groundbreaking ceremony took place on Monday in the Hajigabul industrial quarter, Hajigabul district.

The plant's capacity will be 30,000 vehicles per year. The plant will assemble, weld bodies and paint cars. Azermash CP is constructing the facility.

Investments in the project are estimated at 88 million manat [$51.8 million at the current exchange rate]. More than 1,200 jobs will be created at the enterprise. The car plant is scheduled to be put into operation in May 2025. The manufactured cars will be sold on both the domestic market and will be exported.

Additionally, a memorandum of cooperation was signed on May 1 between the Azerbaijani Agency for the Development of Economic Zones, the Association of Machinery and Equipment Manufacturers and Uzavtosanoat on expanding the manufacturing of vehicles in Azerbaijan, the country's Economy Minister Mikayil Jabbarov posted on social media.

OJSC Azermash was established in November 2017 in order to develop the automotive industry in Azerbaijan. The brands Ravon, Iran Khodro and GAZ were chosen as strategic partners of the company. In April 2021, the GAZ Group and Azermash launched a plant in Azerbaijan to assemble Gazelle Next and Gazon Next cars.

JSC Uzavtoprom is a holding company that unites enterprises for manufacturing cars and auto components.