Uzbekistan, Tashkent, Aug. 29 / Trend D.Azizov /
GM Powertrain Uzbekistan has completed the construction of an automobile engine plant worth $521.8 million.
The source said the test launch of the first engines was conducted on Sunday.
Mass production will begin in November.
The plant will be released at full capacity in 2013.
The production capacity of the plant with the designed value of $521.8 million is 270,000 automobile engines a year. The facility will be specialized in manufacture of 1.2-liter nd 1.5-liter engines.
The company's products will be delivered to the GM Uzbekistan (Asaka city, Andijan region) and other enterprises belonging to a global network of GM. GM Powertrain Uzbekistan has already received orders from about a dozen assembly plants abroad.
The project is financed at the expense of the venture's own funds ($298 million), credit money assigned by the Fund for Reconstruction and Development of Uzbekistan ($14.9 million), credits assigned by commercial banks of Uzbekistan (a total of $156.9 million), and foreign investments and loans ($52 million).
The launch of the new enterprise will provide the level of localization in the automotive industry to 75 percent from the current 53 percent.
GM Powertrain Uzbekistan was established in 2008 as a closed joint stock company Uzavtosanoat (Uzavtoprom) and General Motors corporation with an authorized fund of $ 100 million.
GM's share in the joint venture is 52 percent and Uzavtosanoat - 48 percent.
GM Powertrain Uzbekistan is the second joint venture established by the US Corporation and the Uzbek automobile producer. A joint venture specialized in the manufacture of GM Uzbekistan cars, which was established on the basis of car plant UzDaewooauto, has been operational in Uzbekistan since 2007.
GM and the Uzbek side hold 25 percent and 75 percent, respectively, of the venture's interest. The venture's designed production capacity is 250,000 cars per annum.