Tashkent, Uzbekistan (UzDaily.com) – On 31 October 2022, a ceremony of signing a cooperation agreement between UzAuto and John Deere Walldorf GmbH & Co. KG was held in Walldorf (Germany).

John Deere Walldorf GmbH & Co. KG  is a subsidiary of the largest manufacturer of agricultural machinery in the world, John Deere, with advanced knowledge, experience and know-how in the field of agricultural machinery.

John Deere, founded in 1837, is a world leader in the production and sale of agricultural equipment. The company employs more than 75 thousand people. At the end of 2021, the company’s net revenue was US$44 billion, and net income was US$6 billion. The company pays great attention to the development of R&D, so in 2021 the corresponding expenses amounted to about 2 billion US dollars.

As part of the signed agreement, the parties agreed to cooperate in organizing the assembly production and sale of John Deere agricultural machinery in the Republic of Uzbekistan, which makes UzAuto the only partner in the Central Asian region for the production of John Deere machinery.

It should be noted that UzAuto is the only partner in the CIS region for the production of John Deere equipment. The high efficiency of management of automotive enterprises, as well as the effectiveness of the transformation of the agricultural engineering cluster by UzAuto, made it possible to achieve favorable cooperation conditions for Uzbekistan.

The parties came to an agreement to organize the assembly production of 6140B tractors and W430 grain harvesters, bringing the level of localization of these models to 25-30%. In addition, starting from 2026, the assembly production of a new model of the John Deere cotton harvester will be mastered in Uzbekistan.

An agreement was reached to organize the assembly production of the above models at the production facilities of AgroTechClaster, created in Chirchik, in connection with which exclusive rights to use know-how and trademarks for the production of components and accessories will be provided. Sales (including imports) of selected models of John Deere agricultural machinery in Uzbekistan will be transferred to this enterprise.

This will allow the cluster to modernize the production site to launch the assembly production of John Deere agricultural machinery in accordance with the required standards and provide a further opportunity to export the selected products abroad. Thus, at the first stage, it is planned to coordinate the export of certain models of locally produced equipment to neighboring Turkmenistan and Tajikistan.

To achieve these goals, as well as to establish a chain of production of the necessary components and spare parts, domestic manufacturers will be involved.

In addition, attracting a leading international company will bring the industry to a new stage of development in the field of engineering and technical potential of Uzbek specialists by organizing dual education based on production, as well as exchanging experience with foreign specialists. To this end, John Deere, with the support of its official dealer Landtech LLC, will create a training and educational "Center of Excellence and Competence" in Uzbekistan to train local specialists and customers, as well as provide a full range of after-sales services and ensure the supply of necessary spare parts.

In order to further stimulate sales of John Deere agricultural equipment in Uzbekistan, it is also planned to attract financial instruments from John Deere Financial.

Decree of the President of the Republic of Uzbekistan dated 11.11.2021 No. No. PP-7, provides for subsidizing the following costs of consumers when purchasing agricultural machinery of domestic manufacturers: 15% of the cost of agricultural machinery; interest expenses exceeding 10 percentage points when purchasing agricultural machinery on the basis of credit or leasing conditions.

In addition, the parties agreed that, based on the existing and seasonal demand in the local market, John Deere will import other models of equipment on special terms.

The agreements reached will make it possible to establish the production and sale of agricultural equipment of the highest quality, as well as to maximize the quality of customer service through access to digital services, 24/7 technical support and spare parts through the existing and developed John Deere dealer service structure.