Uzbekistan’s industrial enterprises required to reduce production costs by 10%
Tashkent, Uzbekistan, Jan. 14
By Demir Azizov- Trend:
The Cabinet of Ministers of Uzbekistan adopted a decree according to which industrial enterprises in the country should reduce production costs by 10 percent in 2014.
According to the decree "On Additional Measures to Reduce Production Costs and Lowering Production Costs in Industry" published in Uzbekistan on Jan.13, these parameters will be achieved by reducing energy consumption and improving energy efficiency, rationalization of technological processes and norms of expenditure of raw material resources, labor productivity growth and optimization of personnel.
In the enterprises of complex of fuel and energy, chemical and petrochemical industries of Uzbekistan are to reduce production cost on average by 10.5 per cent, in the enterprises of engineering, electrical industry - by 7.9 percent, agriculture and water industry -by 9.8 percent, communal sector, transportation, capital construction and construction industry - by 10.1 percent, information systems and telecommunications - by 11.15 percent, according to the decree.
By reducing production expenditures, production cost in business associations and large industrial enterprises are to decrease by 8.3 percent, in particular through energy savings - by 1.2 percent, optimizing the cost of raw materials - by 2.6 percent, reducing technological losses - by 1.5 percent, reducing other costs -by 3 percent.
According to the decree, heads of ministries, departments and business associations of Uzbekistan, have ten days to approve the cost reduction target parameters for their constituent industries, based on the approved cost reduction options consolidated in the industry.
Managers of complexes are instructed to conduct quarterly monitoring of progress in the implementation of measures to reduce the production cost and if necessary to apply measures of material incentives or increase personal responsibility of business leaders.
As reported earlier in 2012, the Uzbek government planned to reduce the cost of industrial products by 11 per cent, in 2013 by 11.2 percent.
Translated by M.L.
Edited by C.N.