Uzbek Ferganaazot modernizes production of chemical fiber
Uzbekistan, Tashkent, June 5 / Trend D. Azizov /
OJSC Ferganaazot, the largest enterprise in Uzbekistan for the production of nitrogen fertilizer, will modernize the production of chemical fiber until 2012, the state joint-stock company Uzhimprom said. It is planned to increase the production of acetate filament by 2012 four times - up to 2,000 tons from 500 tons in 2009 within the project worth $5 million.
The project is planned to be implemented on Ferghana Chemical Fiber Plant. Its assets have been transferred and are on the balance of Ferganaazot.
The decision to transfer the assets of the enterprise for the production of chemical fiber worth 125.2 billion soums was made by the Republican Commission for the implementation of bankrupt enterprises and approved by the shareholders of Ferganaazot in late May.
The project will be financed at the expense of the Uzbek banks and credit funds within investment commitments from the sale of 51 percent shares of Ferganaazot.
Ferganaazot (earlier Nitrogen) was commissioned in 1956. Now it is the largest chemical enterprise for the production of ammonium nitrate and urea. In 2009, the Czech MBNS International reconstructed a unit of ammonia AM-76 worth $ 25 million. The loading of ammonia at the plant was increased by 35 percent - up to 400,000 tons.
The Uzbek government attempted to sell 51 percent of its shares at $52 million and investment commitments of $55 million in late 2008. In mid-2009 the tender was suspended due to lack of competitive bids.
Ferghana Chemical Fiber Plant was commissioned in 1969 to meet the demand of light industry enterprises of the USSR for the artificial textile fiber. Its design capacity is 14.800 tons of chemical fibers, including 6,600 tons of acetate filament per year.
However, due to lack of raw materials (caprolactam), the capacity was mothballed. As a result, the company failed to repay debts on loans borrowed for the construction of the production line.
In 2009, the company was declared bankrupt and put on sale with a starting value of 125.2 billion soums. After the failed auctions, the government decided to transfer assets on a balance of Ferganaazot.