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Uzbekistan attracts investors to boost chemical industry

Business Materials 6 May 2020 18:18 (UTC +04:00)
Uzbekistan attracts investors to boost chemical industry

BAKU, Azerbaijan, May 6

By Ilkin Seyfaddini – Trend:

Uzbek JSC Uzkimyosanoat intends to extend the terms of the privatization of the JSC Ferghanaazot chemical enterprise due to the coronavirus pandemic, Trend reports citing the official website of the company.

Ferganaazot's controlling stake (51 percent) is put up for auction. All foreign investors and new interested companies are invited to participate. The investment consultant is EY Advisory.

"Initially, it was assumed that 48.05 percent of state shares, as well as 2.95 percent of shares of JSC Uzkimyosanoat, will be sold via competitive bidding at market value with the condition that the investor assumes obligations to bring the capacity of ammonia production up to 660 thousand tons, carbamide - up to 600 thousand tons, ammonium nitrate - up to 700 thousand tons, and nitric acid - up to 530 thousand tons per year, as well as under the condition of implementing a number of social obligations. According to the latest information, the terms of implementation have been adjusted," the report says.

The decision to sell the company’s shares was taken in line with the presidential decree on measures to further reform and increase the investment attractiveness of the chemical industry issued on April 3, 2019.

Among the chemical enterprises included in the privatization list are also Samarkand Chemistry, Kungrad Soda Plant, Dehkanabad Plant on Production of Potash Fertilizers and Kokand Superphosphate Plant. The stakes in the shares sold range from 51 to 100 per cent.

JSC Uzkimyosanoat was founded in March 2001 on the basis of the association of chemical industry enterprises of the same name. It consists of 43 chemical enterprises and organizations. At present, the enterprises of the branch carry out projects worth about $2 billion.

JSC Ferghanaazot is one of the largest enterprises in Uzbekistan producing mineral fertilizers. The plant produces ammonia, urea, ammonium nitrate, UAN and a number of other chemical products.

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Follow author on Twitter: @seyfaddini

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