Uzavtosanoat Joint Stock Company (Uzavtoprom JSC) and the Italian Landi Renzo S.p.A. have created a Joint Venture (JV) – Avtosanoat-Landi Renzo – to produce equipment for the conversion of vehicles to compressed natural gas (CNG). The new partnership, located in the province of Navoi, will be based in the Free Industrial Economic Zone (FIEZ), an area with special conditions for foreign investments.
The JV will have capacity to produce up to 25,000 CNG conversion systems per year. Initially, components will be imported from Italy, but the plan is to gradually increase the share of locally manufactured items and localize production, thereby creating employment. At the first phase of its implementation, the initiative will involve an investment of approximately USD 1.8 million.
FIEZ is designed to promote a wide range of high-tech and internationally competitive production using modern high-efficiency equipment, technological lines and units, as well as latest innovations. Starting in 2012 the operation period of FIEZ is 30 years with possible prolongation. To create the most favorable conditions for investors, enterprises in FIEZ are provided with high-level infrastructure, excise considerations, favourable work-permit arrangements and much more.
Uzbekistan has had a state controlled CNG conversion program in place since 2007, and has an unconfirmed NGV population or more than 310,000 vehicles. The US Energy Information Administration describes Uzbekistan as the third largest natural gas producer in Eurasia, behind Russia and Turkmenistan in 2011 (Analysis August 2013),with 65 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2013.
(Source: Navoi FIEZ)