Uzbekistan, Tashkent, Feb.10 / Trend D.Azizov /
In 2012-2012 Xorazm shaker JV Public corporation, the only sugar producer in Uzbekistan, will implement project on modernization of production worth $7.2 million, a source in government cirles told Trend.
Under the modernization project new equipment that will increase the plant capacity to 90,000 tons and provide output up to 390,000 tons of sugar annually will be installed.
This project will be funded by the plant itself.
Khorezm sugar factory worth $83.25 million was put into operation in 1998. Initially the plant was designed for processing sugar beet, which was planned to be grown in Uzbekistan. The design capacity of the plant is recycling 3,000 tons of sugar beets a day. However, due to low crop capacities of the Khorezm sugar factory have been suspended.
In 2002, the Uzbek-Austrian-American joint venture "Shakar Investment" implemented a project worth $2 million for the transfer of capacity of the plant for processing of raw cane sugar. At present, the capacity of technological line for processing of raw materials is 1,000 tons of sugar a day.
In March 2006 the Austrian SEID Nandelsgesellshaft mbH acquired 99.43 percent stake in "Xorazm shakar" for $17.6 million and took additional investment obligations on repayment of credit debt of the company to the amount of $1.6 million and 7.2 billion soums. In addition, investors should invest in the development $6 million for the development of new products.
The authorized capital of "Xorazm shakar" is 14.2 billion soums, divided into 1.42 million ordinary shares of 10,000 soums par value.
Currently, shareholders of the company are Panamanian Motril Investments, which owns 69.43 per cent stake, Singapore KITO Investments - 20 percent, SEID Handels GmbH - 10 percent, the labor collective - 0.57 percent.
In 2010 the company increased production of sugar by 4 percent - up to 286.055 tons, in January - September 2011 - by 12.5 percent to hit 245.5 tons compared to the same period of 2010. The annual demand for sugar in Uzbekistan is about 630,000 tons.