International Trade

U. Rozukulov, Deputy Prime Minister of Uzbekistan and Chairman of Uzavtosanoat (left) speaks with LS Group Chairman Christopher Koo (right).
U. Rozukulov, Deputy Prime Minister of Uzbekistan and Chairman of Uzavtosanoat (left) speaks with LS Group Chairman Christopher Koo (right).

 

LS Group (Chairman Christopher Koo) signed an agreement for comprehensive business cooperation with the automobile industry administration under the Uzbekistani government called Uzavtosanoat on June 18. Uzbekistan is the first country President Park visited in Central Asia.

On the behalf of both companies, Chairman Christopher Koo and U. Rozukulov, Deputy Prime Minister of Uzbekistan and the Chairman of Uzavtosanoat signed a strategic alliance agreement for LS Group’s major business areas including tractors, electricity, telecommunications infrastructure, auto parts, and industrial material at Tashkent, where Uzavtosanoat is located.

This 500-million-dollar agreement for supplying the tractors was promoted to the agreement with the Uzbek government, and LS Mtron earned the position as the sole supplier of tractors with less than 100 horsepower. It also earned the rights to supply injection molding machines and auto parts.

Also, as the scope of supply of LS Group is expanded to supplying power cables, smart grids, and copper smelting, business cooperation of US$1 billion including US$500 million for the tractors will continue for five years.

Prior to this, last December LS Mtron signed a contract for US$500 million, supplying 25,000 tractors for five years with ASI, a public agricultural machinery company in Uzbekistan, providing the opportunity for a comprehensive business cooperation to LS Group.

LS Group is expected to acquire about US$500 million in business with supplying tractors, injection molding machines, auto parts, and electric power infrastructure in the future.

On June 9, Uzbekistan’s Deputy Prime Minister Rozukulov and his company visited LS Mtron’s tractor manufacturing plant and engine factory in Jeonju, Jeolla Province. They checked on the manufacturing process and technology, and met Chairman Koo on the same day and discussed a win-win situation by becoming partners, and finally reached this consensus.

Uzbekistan’s major industry is farming, and it has a great potential to become a big market. LS Group has high hopes with this agreement to open a new market with its tractors, gradually replacing European and Russian products, and contribute to the modernization of the country with its diverse infrastructure technology.

Chairman Koo accompanied President Park’s visit to Central Asia as a delegate of the economy, and participated in a guest banquet and business forum, forming a network with the leaders and government officials from both countries that helped strengthen the business cooperation of Eurasia.

Chairman Koo said, “I feel proud and responsible that the LS Group has earned the credentials for our technology in Uzbekistan, the hub of technology and industry of Asia and Europe,” and, “I would like to express gratitude to the Uzbek government for trusting us, and we will expand our horizons of cooperation with better technology and comprehensive solutions.”

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