China Xiaou Group to invest $1.5bn to establish car manufacturing plant in Fergana, Uzbekistan

China Xiaou Group to invest $1.5bn to establish car manufacturing plant in Fergana, Uzbekistan
Plans have been unveiled for a new car manufacturing plant in Fergana. / Fergana region local government.
By Mokhi Sultanova in Tashkent June 20, 2024

China Xiaou Group has announced plans to establish a car manufacturing plant in Uzbekistan's Fergana region.

The decision follows negotiations between officials and entrepreneurs from Fergana and China Xiaou Group's management during a recent visit paid to China. 

Huang He, the company's head, disclosed the $1.5bn investment plan that will be rolled out over the next five years for the project.

The initial phase, starting with a $50mn investment, will focus on establishing auto assembly lines capable of producing up to 60,000 vehicles annually, including models featuring gas, electric and hybrid engines.

The following phases will see further enhancements in production capacity and local component sourcing. 

The second phase, estimated at $350mn, will prioritise expanding local component manufacturing. 

The final phase, requiring an investment of $1.1bn, aims to increase annual production to 110,000 vehicles, inspired by the capabilities of the BAIC Bluepark Magna plant in Zhenjiang, which the Uzbek delegation visited.

The decision to establish a manufacturing facility in Fergana stressed China Xiaou Group's commitment to leveraging local resources and expertise to meet growing regional demand. 

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Traders divert six US LNG cargoes from Asia to Europe

Higher European prices and poor demand in Asia for LNG have resulted in traders diverting at least six US LNG cargoes already this month, Reuters reported on January 20. Demand for the ... more

China raises imports of Russian LNG by 3.3% in 2024

China has increased its reliance on Russian LNG with imports rising 3.3% to reach 8.3mn tonnes in 2024, Russian news agency Tass reported on January 20. Total imports of the ... more

Iraq discovers largest oil reserve in central region

Iraq’s North Oil Company (NOC) and the Chinese Energy and Building Services (EBS) jointly announced a significant oil discovery in the South East Baghdad field, Shafaq News reported on ... more

Follow Us On

Most Read

  1. Kaliningrad becomes an energy island after Baltic States cut Russian grid connection
    1 month ago
  2. Briefings reveal Nato chief called on EU and Turkey to improve relations amid pressing security concerns
    1 day ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    10 months ago
  4. Poland's adjusted income to overtake Japan's by 2026
    7 months ago
  5. Iran strikes oil deposits estimated at 5bn barrels worth $346bn
    2 days ago
  1. Ukraine doesn't have any rare earth metals, and the strategic minerals it does have are not worth trillions of dollars
    17 days ago
  2. US administration 'misinformed about Romanian elections', says presidential candidate Nicusor Dan
    17 days ago
  3. Putin says sanctions have strengthened, not weakened, Russian economy
    20 days ago
  4. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    10 months ago
  5. Kaliningrad becomes an energy island after Baltic States cut Russian grid connection
    1 month ago

Reports

Dismiss