Chirchiqqishloqmash JSC and Germany\'s LEMKEN GmbH & Co. KG signed an agreement on a joint venture LEMKEN Chirchiq specializing in the manufacture of modern tillage and other agricultural machinery.

This year the new joint venture plans to launch production of multifunctional mounted reversible plows EurOral 73+1, rotary harrows Zirkon 8/250, furrow press Vari-oPack WDP70 and disc cultivators Smaragd 9/300.

The authorized capital of the new joint venture is 500 thousand euros, of which 70% invested by Chirchiqqishloqmash, and 30% by the German company.

It should be noted that the companies also agreed on a phased localization plan providing for more than 50 per cent level of localization of production of multifunctional reversible plows, rotary harrows, disc cultivators and packers.

In addition, the partners are going to conclude a special agreement on granting the license and technical assistance between the LEMKEN GmbH & Co. KG and JV LEMKEN Chirchiq. As part of this document, the German side shall provide design documents for the agricultural machinery planned for manufacture, providing the agreed level of localization.

The Uzbek government has ex years from all taxes, except for compulsory contributions to the Pension Fund, the National Road Fund and the Fund for Reconstruction, Refurbishment and Equipping of Educational and Medical Institutions. In addition, the company has been exempted from customs duties on imported components, parts and agricultural machinery and spare parts for its maintenance. Tax and customs privileges can be terminated in case of the German partner fails to meet its obligations under the agreement on license sharing and technical assistance.

This is the second joint venture in Uzbekistan, with well-known in the manufacture of agricultural machinery. Earlier, Tashkent Tractor Plant and CLAAS Central Asia Investment GmbH formed a joint venture Uz CLAAS Agro for the assembly of agricultural-machinery.

In general, last year ago machinery producers in the country made 207 grain harvesters, 641 tractor planters, 172 tractor plows. (Source: Uzbekistan Today Newspaper)