Uzbekistan to begin construction of new cement plant worth $47 mln in 2012

Business Materials 6 February 2012 16:07 (UTC +04:00)

Uzbekistan, Tashkent, Feb.6 / Trend, D. Azizov /

Joint Stock Company "Uzbuildmaterials" and Russian "Oil and Gas Company" will begin to construct a new cement plant with a total estimated cost of $46.7 million in the Surkhandarya region (south of Uzbekistan) in the first quarter of 2012, the Uzbek company told Trend.

Construction of the plant is scheduled to be completed by late 2013. It is expected that after commissioning, the plant will produce about 420,000 tons of cement using shaft furnace technology, with about 60 percent of total production being exported.

The Russian company signed an investment agreement with Mack Management Service (registered in Sri Lanka) worth $46.7 million which saw the project implemented. Terms of the agreement have not been disclosed.

In 2008, "Oil and Gas Company" created a subsidiary company "Surkhaninvesttsement Ltd " for the construction of the plant. However, due to problems with financing, the project was postponed indefinitely.

Six cement plants with total installed capacity of about 7 million tons currently operate in Uzbekistan.

According to official statistics, cement production in Uzbekistan in 2011 decreased by 1.5% compared to 2010, amounting to 6.69 million tons.