LG are to spend $8.9 million (USD) to expand the production of refrigerators at the Sino Joint Stock Company (Samarkand), the monopoly producer of refrigeration and freezing equipment in Uzbekistan, according to the Uzeltekhprom association, which includes Uzbekistan’s electrical companies.
The Uzeltekhprom and LG Electronics have signed a cooperation agreement to expand the production capacity of household appliances at Sino JSC.
Under the agreement, the Korean company will increase the production of refrigerators and freezers from 25,000 units in 2010 to 150,000 units per year by 2013, including for exports from 2,000 to 15,000. The localization of the production for this period will increase from 17 per cent to 52 per cent.
In December 2009, LG Electronics commissioned the production of refrigerators at the Sino JSC. The production capacity of the first assembly line totaled 50,000 refrigerators per year. The investments in the first stage made up approximately $2 million.
In 2009-2013, Uzbekistan’s electrical enterprises will attract $93 million to upgrade and develop their production.
In particular, the largest amount of investment ($48.7 million) will be channeled to launch production of new appliances.