Uzbek president instructs to develop chemical industry

Business Materials 29 December 2017 09:32 (UTC +04:00)
President of Uzbekistan Shavkat Mirziyoyev has instructed to develop chemical industry and increase the domestic production of fertilizers
Uzbek president instructs to develop chemical industry

Baku, Azerbaijan, Dec. 29

By Nigar Guliyeva – Trend:

President of Uzbekistan Shavkat Mirziyoyev has instructed to develop chemical industry and increase the domestic production of fertilizers, the press service of the president reported.

The decisions were made at a meeting held to discuss current financial and economic situation of chemical industry enterprises and development of the industry.

There was reminded that Uzbekistan adopted a programme for development of chemical industry for 2017-2021. It envisages implementation of 43 investment projects with a total value of $3.1 billion and to increase industrial production by 2.4 times, their exports - 2.7 times, to increase the share of localized products to 42.5 percent and to master production of 43 new types products, open up over 3,200 jobs.

However, still the enterprises of chemical industry, including producers of mineral fertilizers have some financial problems.

The costs associated with mineral fertilizers for agricultural needs are not covered. As a result, chemical enterprises are limited in their ability to pay for consumption of natural gas, electricity, phosphate raw materials, sulfuric acid and other types of goods and services consumed, and their accounts payable.

In this regard, starting from 2018, the supply of mineral fertilizers to consumers is planned to be carried out through exchange trades through the intermediation of the "Single agent" of Uzkimyosanoat.

There are also shortcomings in reducing the cost of mineral fertilizers and increasing the profitability of the industry. In particular, 67 percent of the cost of nitrogen fertilizers are energy costs. Ferghanaazot, Dekhkanabad Potash Fertilizer Plant, Kokand Superphosphate Plant, Ammophos-Maxam and Maxam-Chirchik companies complete the current year with low profitability, and Navoiazot with losses. In such conditions, enterprises are completely limited in the formation of their own working capital and are forced to solve problems by attracting loans at 16-18 percent per annum.

In this regard, Uzkimyosanoat was instructed jointly with the relevant ministries and departments to develop a program of concrete measures to reduce the cost of production of chemical products and increase its competitiveness in 2018-2019.

The Uzbek president also stressed a need to develop a sectoral plan for implementation of current and major repairs.

Currently, the country's need in phosphate fertilizers is at the level of 639,600 tonnes, which is provided only by 25 percent. In this regard, by upgrading the existing facilities, it is envisaged to increase production to 177,000 tonnes in 2019, and by building a new phosphate fertilizer production complex in 2021 - up to 550,000 tonnes.