Uzbekistan to build sugar factory worth $108 mln

Business Materials 14 June 2012 16:59 (UTC +04:00)

Uzbekistan, Tashkent, June 14 / Trend D. Azizov /

The Uzbek government has approved the construction of a sugar plant with a design capacity of 1,000 tons a day, a source in government circles told Trend on Thursday.

The source has specified that the plant with project cost of $108.45 million will be built in the Angren special industrial zone in the Tashkent region by the Singaporean companies Welton International Enterprises Pte. Ltd. and Kito Investment Pte. Ltd. and the Austrian SEID Handelsgesellschaft mbH. The plant will operate on raw cane sugar.

According to the decree, a the n-owned enterprise Angren Shakar with an authorised capital of $20 million will be established for the construction of the plant.

The project will be financed by Angren Shakar's founders in the form of contributions to the statutory fund and direct loans totaling $55 million and a loan from the Singapore Oriental Singapore Capital Pte. Ltd..

The government allowed Angren Shakar LLC until July 1, 2013 to carry out construction works and provided to the company significant tax and customs privileges.

Welton International Enterprises Pte. Ltd, Kito Investment Pte. Ltd. and SEID Handelsgesellschaft m.b.H. are the sole shareholders of the factory Khorezm-Shakar, with 69.43 percent, 20 percent and 10 percent stakes, respectively. The personnel own 0.57 percent of the shares.

Khorezm worth $83.25 million was put into operation in 1998. The design capacity is 1,000 tons of sugar a day.

Initially, the plant was designed for processing sugar beets, which were planned to be planted in Uzbekistan. Later, however, because of the low sugar beet yield, the plant was redeveloped for processing raw cane sugar.