MAN Begins Uzbek Construction To Expand Central Asian Presence

German truck maker MAN is continuing its expansion drive in emerging Europe, particularly in the east of the region. After signing a memorandum of understanding (MoU) for local production with Ukrainian carmaker Bogdan Corporation in January 2011 and with the government of St Petersburg in Russia in April, it has now begun construction on a new plant in the Samarkand region of Uzbekistan, in partnership with local firm Uzavtosanoat. BMI points out that the expansions come in view of the truck maker's limited presence in the region, which currently accounts for a small 7% of its total revenue. To a large extent, these developments also underscore MAN's strategy for growth in newer markets, as a way to reduce its dependence on developed markets.

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