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UAZ Vehicle Production Starts in Cuba – Assembly Line Launched

by Priya Shah – Business Editor

Havana, Cuba – August 29, 2024 – Production of UAZ (Uljanovski Automotive Plant) off-road vehicles has commenced in Cuba, marking the first time these Russian-made vehicles are assembled locally in the Caribbean nation. The new assembly plant, located in the industrial zone of Havana, is operated by Echo-EXport, a long-term partner and distributor of UAZ vehicles.

The project represents a significant step in strengthening economic ties between Russia and Cuba, and addresses a growing demand for robust, adaptable vehicles suited to Cuba’s diverse terrain and climate. Initial production focuses on the UAZ Patriot SUV and Pickup models, both modified to meet regional requirements. Assembly utilizes the Disassembled Knock Down (DKD) / Semi Knock Down (SKD) method, importing components from the UAZ plant in Uljanovsk, Russia, to reduce shipping costs and customs duties.

Echo-EXport, led by Managing Director[[Name of Managing Director – not provided in source], has invested in modern assembly equipment and implemented stringent quality control procedures, overseen by company representatives. The plant currently operates with a projected initial capacity of 500 vehicles annually, anticipated to be reached by September 2025. With three-shift operation, production could scale to a maximum of 1,500 units per year.

The UAZ Patriot and Pickup models are particularly well-suited for Cuba’s agricultural sector, tourism industry, and challenging road conditions. Future plans include expanding the model range to incorporate the UAZ “PROFI” commercial vehicle line, catering to business and logistical needs. The UAZ plant in Uljanovsk, founded in 1941 and historically known for its military vehicles, currently exports to over 80 countries.

Understanding DKD/SKD Assembly: The DKD (Disassembled Knock Down) and SKD (Semi Knock Down) methods involve shipping vehicles in partially disassembled states. DKD involves larger units, while SKD includes more pre-assembled components. This approach lowers transportation expenses and import taxes while enabling localized production adjustments, such as adapting vehicles for specific climates or road conditions. This strategy is increasingly common for automakers seeking to establish a presence in new markets without the ample investment of a fully integrated manufacturing facility.

Source: uaz.ru

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