Uzbekistan, Oman to establish JV
Uzbekistan, Tashkent, March 18 / Trend D. Azizov /
Uzbekneftegaz National Holding Company, Uzstroymaterialy company and the Oman Investment Fund plans to establish a joint venture to build a cement plant in Surkhandarya worth $ 250 million in the second half of 2011, Uzstroymateraly told Trend.
The intergovernmental agreement was signed between Uzbekistan and Oman on the basic principles of a joint venture to build a cement plant in Surkhandarya region in March 2010. The documents were planned to be signed by late 2010.
It is assumed that Oman's side will own 50 percent, Uzbekneftegaz - 40 percent, Uzstroymaterialy - 10 percent.
The cement plant with design capacity of 1.7 million tons per year will produce special brands of cement. The construction period of the plant is three years.
The project will be financed by loans from the Oman Investment Fund and own funds of Uzbek co-chairmen.
Roughly six cement plants with total capacity of about 7 million tons operate in Uzbekistan. The largest ones are Kyzylkumcement (3,1 million tons), Akhangarancement (1,74 million tons) and Kuvasaycement (920,000 tons).
According to the official statistics, production of cement increased by 0,3 percent in Uzbekistan in 2010 up to 6.872 million tons compared to 2009.