Uzbekistan, Tashkent, Nov. 2 /Trend D.Azizov /
The Iranian EMG has started to build a plant with a capacity of 2 million square meters of ceramic tiles per year from scratch, Uzkurilishmateriallari told Trend on Friday.
The project cost is $12 million.
The Italian SACMI will be the supplier of process equipment.
The project will be financed from Iranian company's own funds and loans of Uzbek banks.
Earlier, EMG planned to build a factory on production of ceramic tiles worth $24 million and with designed capacity of 4.5 million square meters of ceramic tiles per year.
The reasons to the changes in initial plans have not been mentioned.
Construction of three plants on production of ceramic tiles is planned in Uzbekistan in coming years.
Korean IS DONGSEO is currently building a plant worth 27 million for production of 3.5 million square meters of ceramic tiles per year in Navoi free economic industrial zone.
In 2011 Russian Invest Realty company launched a project on construction of a ceramic tile plant in Samarkand capacity with capacity of 2.75 million square meters per year.
The financing of the project worth $ 17 million is provided by a loan from the German Berliner Bank in the amount of $ 13 million and Invest Realty equity of four million dollars.
In September 2010, the Uzbek-Chinese JV Peng Sheng, established by Chinese Wenzhou Jinsheng Trade Co, Ltd and Uzbek LLC Sinlong, commissioned the production of ceramic tiles worth $ 12.3 million in the Syrdarya region (central part of the country). The design capacity of the enterprise is four million square meters per year.
The annual demand of Uzbek domestic market in the ceramic tile is about 10 million square meters per year, 85 per cent of which is covered by imports.