Tuesday, 24, October, 2017

President Shavkat Mirziyoyev signed the Establishing an Enterprise With Foreign Investment - Uzbekistan Peugeot Citroën Automotive (UzPCA LLC) Decree.

The document has approved the investment accord entered into between Peugeot Citroën Automobiles S.A. and JSC UzAvtoSanoat containing provisions on the investor’s obligations and the state’s supportive measures provided to UzPCA LLC.

Taking into account the short project completion timeframe (until May 1, 2018), construction and installation works will be carried out simultaneously with the development of design estimates. Pre-project documentation will be developed in a one-stage procedure, without a preliminary feasibility study, the decree says.

The enterprise is being offered unprecedented tax benefits. During the construction period, as well as for 10 years from the date of commissioning of UzPCA LLC will be exempt from all taxes, as well as from mandatory payments to the Republican Road Fund under the Cabinet of Ministers.

The company Peugeot Citroën will be exempt from tax on income received as dividends paid by UzPCA LLC, and the enterprise’s foreign personnel will not pay income tax.

The plant will, under the full industrial cycle, manufacture light commercial vehicles under Peugeot and Citroën brands designed for the transport of passengers and cargo. Peugeot Citroen Automobiles S.A. and JSC UzAvtoSanoat on May 16, 2017 signed a joint venture agreement to create Uzbekistan Peugeot Citroën Automotive, an equally-owned company that will operate a production plant in the Jizzakh free economic zone, 200 km from Tashkent. The joint venture, whose initial capital will be 30 million euros, will require 130 million euros of total investments.

As reported earlier the French giant will bring its technological and intellectual capacities. It will set up processes and train staff. The joint venture expects that at least 50% of the parts will be produced locally within the first year, taking advantage of the network of SC UzAvtoSanoat and its suppliers. The site will have a production capacity of 16,000 vehicles per year, marketed in Uzbekistan or exported abroad.

 

 

Latest news in Economy