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Uzbek Metallurgical Plant receives new order

Business Materials 28 February 2013 18:55 (UTC +04:00)
Uzbek Metallurgical Plant JSC (Uzmetkombinat, Bekabad city, Tashkent region) and the Chinese Capital Engineering & Research Incorporation Limited (CERI) signed a contract for the production of rolled wire with an estimated cost of $ 30 million, a representative of the plant told Trend.

Uzbekistan, Tashkent, 26 Feb. / Trend, D. Azizov /

Uzbek Metallurgical Plant JSC (Uzmetkombinat, Bekabad city, Tashkent region) and the Chinese Capital Engineering & Research Incorporation Limited (CERI) signed a contract for the production of rolled wire with an estimated cost of $ 30 million, a representative of the plant told Trend.

According to the source, the Chinese company has won the tender announced in November 2012.

Under the contract, CERI will build turnkey production of the 9-10 mm rolled wire by the end of 2014 will build "turn-key" wire rod eight 10 mm at mill 300 of the section rolling manufactory with installation of the wire block.

The estimated capacity of the new facility is designed to produce 100,000 tons of the rolled wire annually.

The project is financed through loans from Uzbek banks worth $ 22 million and equity of Uzmetkombinat in the amount of $8 million.

Uzmetkombinat is the only company in Central Asian steel industry, working with scrap metal. The plant accounts for 90 percent of steel production in the country. The plant was commissioned in 1956. Its previously recycled scrap metal delivered from all republics of Central Asia. Currently it uses scrap generated in the country, as well as raw materials, purchased outside the country under the tolling agreement.

Plant capacities are designed to produce 790,000 tons of steel, 760,000 tons of special metal-roll.

The company's authorized capital stands at 114 billion soums. Some 71.91 per cent of its shares are owned by the state, 10 per cent by the labor collective and 2.65 per cent by minority shareholders. The Uzbek National Bank for Foreign Economic Activity, Promavtoinvesttorg, Navoi and Almalyk own 15.44 per cent of the shares.

As reported earlier, Uzmetkombinat implements a production development and modernization programme worth $134.7 million in 2011-2015.

The program's implementation will increase the enterprise's steel production capacity by 100,000 tons up to 850,000 tons, processed scrap metal by 290,000 tons up to 670,000 tons and reduce the enterprise's energy consumption by 20 per cent by 2016.

In 2012, Uzmetkombinat increased steel production by 0.4 percent up to 736.3 thousand tons compared to 2011.

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