Uzbekistan to invest $120 million for the development of car building and rolling stock repair projects.

President of Uzbekistan Islam Karimov approved the feasibility study for the project of rolling stock repair facilities, car-building and reconstruction of casting shops at Casting-Mechanical Plant.

As part of the project worth $120.18 million, the national rail carrier Uzbekistan Railways has signed a $54.3 million contract with the Estonian company AS Skinest Rail for the supply of equipment, works and services.

The project will be financed by Uzbekistan Railways itself ($71.38 million) and Reconstruction and Development Fund of Uzbekistan (a $48.8 million loan). The project already in 2013 will begin production of casting products made of steel, cast iron and nonferrous metal. In addition, we plan to increase the volume of construction and repair of freight cars and to manufacture large-capacity containers.

The President delivered within the project from customs duties equipment, materials, spare parts, components and assemblies, tooling, and technical documentation are not produced in the country and imported by \"Uzbekistan Railways\". In addition, from the value-added tax exempt works (services) performed by companies \"Uzbekistan Railways\".

The Casting and Mechanical Plant specializes in the construction of box cars and open-top cars, major repairs, restoration to the extension of the life of freight cars, the manufacture of components and spare parts for rolling stock and track structure. The plant has modern equipment not only for the construction of cars, but also to test their quality, in particular, operates test stand for tension and compression, which is developed by the designers of the plant.

The plant, which is one of the largest fastest growing industrial facilities in the sector, was created in October 2003 on the base of the plant Irgidromash. (Source: Uzbekistan Today newspaper)