Uzbekistan to Build Machinery Zone in Samarkand Region

Tashkent, Uzbekistan (UzDaily.com) — President of the Republic of Uzbekistan Shavkat Mirziyoyev has signed a resolution dated April 20, 2026, outlining measures to develop the mechanical engineering industry in the Samarkand region.

The document provides for the establishment of a specialized machinery industrial zone in the Kattakurgan district and the implementation of five investment projects with a total value of US$116 million.

Under the resolution, the share of mechanical engineering in Samarkand’s industrial output is expected to reach 15% by 2030, while the value-added share in the sector is projected to rise to 40%.

The new zone is planned to produce up to 10,000 units of commercial vehicles annually, including trucks, buses, minibuses, pickups, special-purpose vehicles, and electric transport.

In addition, production of spare parts and components through industrial cooperation is expected to reach US$100 million per year in local content terms. The project also aims to enter markets in Central Asia and CIS countries and create more than 2,000 high-paying jobs.

The industrial zone will be located on a 100-hectare site in the “Yangihayot” area of Kattakurgan district. Land currently held in reserve by the district administration will be reclassified from agricultural use to industrial, transport, and other designated categories.

The Samarkand regional administration is instructed to submit the relevant proposal to the governmental commission on land category changes. After approval, the land plots will be divided into lots and offered through electronic auctions for companies producing vehicles of categories N, M2, M3, O, and L, as well as components and spare parts. Management of the zone will be assigned to the state institution “Directorate for Industrial Zones of Samarkand Region.”

The resolution also approves five specific investment projects. The flagship project involves the production of commercial vehicles with a capacity of 5,000 units per year and a value of US$40 million, of which US$30 million will be contributed by founders’ own funds. The facility is scheduled to be commissioned in December 2029, will cover 30 hectares, and create 400 jobs. An expansion phase is planned to add another 5,000 units annually by December 2031, with an additional investment of US$45 million and 300 new jobs.

The second project involves the production of motor vehicles and baby strollers with a capacity of 50,000 units per year, valued at US$17 million, with US$10 million in equity funding. It is scheduled for launch in June 2028 and will create 200 jobs.

The third project includes the production of trailers and semi-trailers for commercial vehicles with a capacity of 5,000 units per year, valued at US$5 million, to be launched in December 2028 with 50 jobs created.

The fourth project focuses on hydraulic equipment and systems for commercial vehicles with a capacity of 5,000 units per year, valued at US$7 million, scheduled for launch in March 2029.

The fifth project involves the creation of a modern logistics center with a cargo capacity of 200,000 tons per year, valued at US$2 million, to be commissioned in March 2028 and create 50 jobs. Total private capital across all projects amounts to US$46 million, with 1,050 jobs expected in the first phase.

For workforce development, the zone directorate and participating companies are tasked with implementing a training program for local specialists over at least three years, ensuring that at least 5% of total jobs annually are covered under dual education systems.

The Samarkand regional administration is required to develop and approve a master plan for the industrial zone within one month, financed by the Samarkand Development Fund. Within the following month, a list of infrastructure projects for roads, utilities, and rail connectivity for 2026–2027 must also be prepared.