Uzbekistan, Tashkent, Nov. 23 /Trend D.Azizov/
Ferghana Azot JSC, the largest enterprise in Uzbekistan on the production of nitrogen fertilisers embarked on a project for the reconstruction and modernisation of carbamide and ammonium nitrate production with a total value of $55 million, the Uzhimprom state joint-stock company told Trend on Friday.
"General construction work and supply of equipment has been launched," the company representative said.
As previously reported, the project will increase the production capacity by 1.5 times. In particular, carbamide production is planned to rise by 30.000 tons, ammonium nitrate by 62.000 tons, ammonia by 50.000 tons and nitric acid by 50.000 tons.
The project's funding will be provided by the company's own funds to the sum of nine million dollars, a $24 million loan from the Uzbek Fund for Reconstruction and Development and loans from Uzbek banks for a total amount of $22 million. Implementation of the project is planned for 2012-2014.
In 2009, Czech MBNS International implemented reconstruction of an AM-76 ammonia unit at the enterprise worth about $25 million. Within the project, ammonia aggregate loading at the company was increased by 35 per cent to 400.000 tons.
Previously it was reported that by 2014, Fergana Azot also plans to implement a project on the creation of a dimethyl ether production enterprise with a project cost of about $ 90 million and a project on modernisation of the chemical fibre production facility worth five million dollars.
Funding of the projects is planned to be implemented through Uzkhimprom's equity and loans from Uzbek banks and foreign direct investment.
Ferganaazot (previously Nitrogen) was commissioned in 1956. Now it is the largest chemical enterprise for the production of ammonium nitrate and urea. In 2009, the Czech company MBNS International reconstructed a unit of ammonia AM-76 worth $ 25 million. The loading of ammonia at the plant was increased by 35 per cent up to 400,000 tons.
The Uzbek government attempted to sell 51 per cent of its shares at $52 million and investment commitments of $55 million in late 2008. In mid-2009 the tender was suspended due to lack of competitive bids
According to the State Statistics Committee, in January - September this year, the chemical industry of Uzbekistan increased production of mineral fertilisers by 5.4 per cent compared to the same period in 2011, to 955.000 tons.