Hyundai Motor Co., South Korea's top auto maker, is in talks with Uzbekistan to buy a stake in a former Daewoo Motor factory in the central Asian state, Korean newspaper the JoongAng Ilbo reported on Friday quoting Hyundai official.
As earlier reported, an Uzbek industry official said the country had bought the 50% stake held by Daewoo in their joint venture but had yet to decide if it would seek a new foreign partner.
"There have been negotiations with Uzbekistan on the plant, but nothing has been decided, and it is unclear if the talks would succeed," a Hyundai official said on Friday.
Analysts have said overseas production is crucial for Hyundai as a rising won currency dents profits earned abroad, the newspaper said.
In 1996, the venture, UzDaewoo Auto, launched the conveyor assembly of Daewoo cars at a plant located in Asaka in Uzbekistan's eastern Andijan region.
The plant, with a capacity of 200,000 cars a year, was estimated to be worth US$650 million and its charter capital was worth around US$200 million.
The JoongAng Ilbo, reported on Friday that Hyundai said it was in talks with Uzbekistan and that it aimed to complete negotiations within this year, with a plan to expand the factory's capacity to 300,000 vehicles per year.
If labour issues are resolved, the factory could produce small cars such as the Verna and the Click, an unidentified Hyundai official told the paper......
Taken here http://business.uzreport.com/mir.cgi?lan=e&id=20247
Rather sad news
.......It seems, Uzbeks will stop Daewoo cars producing..... And we'll never buy a new Nexia 
