Sugar production ups in Uzbekistan

Business Materials 30 October 2012 16:01 (UTC +04:00)

Uzbekistan, Tashkent, Oct. 30 / Trend D.Azizov /

The Xorazm Shakar plant, the only sugar producer in Uzbekistan, increased sugar output by 5.4 per cent to reach 258,830 tons in Jan.-Sept. 2012 compared to the same period of 2011, the enterprise said today.

The plant produced 322,696 tons of sugar in 2011 or 12.8 per cent more than in 2010.

The Xorazm Shakar plant worth $83.25 million was put into operation in 1998. Initially it was designed for processing sugar beet which was planned to be grown in Uzbekistan. The design capacity of the plant is for recycling 3000 tons of sugar beets a day. However, due to low crop capacities the plant has been suspended.

In 2002, the Uzbek-Austrian-American joint venture Shakar Investment implemented a project worth $2 million for the transfer of the capacity of the plant for processing raw cane sugar. At present, the capacity of for processing of raw materials is 1000 tons of sugar a day.

In March 2006 the Austrian SEID Nandelsgesellshaft mbH acquired a 99.43 per cent stake in Xorazm Shakar for $17.6 million and took additional investment obligations on repayment of credit debt of the company to the sum of $11.6 million and 7.2 billion soums. In addition, investors should invest $6 million for the development of new products.

The plant intend implementing modernisation plans for production worth $7.2 million Under these plans, funded by the company itself, new equipment would increase the plant's capacity to 90,000 tons and ensure an output of up to 390,000 tons of sugar annually.
Uzbekistan's annual demand for sugar is about 630,000 tons.

Currently Welton International Enterprises Pte Ltd, Kito Investment Pte Ltd. and SEID Handelsgesellschaft m.b.H. are the shareholders with packages of shares worth 69.43 per cent, 20 per cent and 10 per cent respectively. The staff has a 0.57 per cent share.

The Uzbek government approved the sugar plant construction project worth $108.45 million in June 2012. With a design capacity of 1000 tons of sugar per day it will be built at the Angren special industrial zone in the Tashkent region by Singaporean companies Welton International Enterprises Pte Ltd., Kito Investment Pte. Ltd., and Austrian SEID Handelsgesellschaft mbH.

The plant will operate on raw cane sugar.

It is assumed that commissioning the new plant will allow the country to meet its needs for this product.