BAKU, Azerbaijan, July 1
The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) will render financial support to Indorama Corporation in modernizing Uzbekisant's Kokand Superphosphate Plant JSC, Trend reports citing podrobno.uz information portal.
A signing ceremony of loan agreements worth $25 million among IFC, EBRD and Indorama Kokand Fertilizers and Chemicals JSC was held on June 30 via videoconference.
IFC’s and EBRD’s loans allocated in equal shares are given to a foreign investor without using Uzbekistan’s state guarantees and will be used to finance direct investments of Indorama Kokand Fertilizers and Chemicals into the modernization of the plant.
The project is to be implemented in two stages. At the first stage, the production of water-soluble fertilizers for greenhouse crops will be arranged and the output of superphosphate will be increased from 100,000 tons to 350,000 tons per year.
At the second stage, it is planned to establish the production of new chemical products, such as dicalcium phosphate, potassium sulfate and sulfuric acid.
Besides financing, IFC will also render advisory support to Indorama in developing and organizing fertilizer distribution systems and technical support for farmers in the field of land quality management.
"We plan to further assist Uzbekistan in attracting private investments by such companies as Indorama Corporation, which may greatly improve the results of activity of farmers, create jobs, improve food security and generally improve the investment climate," IFC's Vice President for Latin America and the Caribbean, and Europe and Central Asia Georgina Baker said.
In turn, head of EBRD department confirmed the bank’s commitment to render further support for Uzbekistan by rendering advisory services on the privatization of state-owned enterprises and banks, as well as expanding the loan portfolio in the country focusing on the private sector.
Kokand Superphosphate Plant was established in 1935. The plant produced mineral fertilizers from phosphorites of the Tashkura deposit. Some 96 percent of the plant was acquired by Indorama Corporation in 2019.
Indorama Corporation is one of the leading chemical holdings in Asia with subsidiaries and affiliates producing a wide range of products, including fertilizers, polymers, polymeric raw materials, textiles, fibers and medical gloves in more than 35 countries, in which more 40,000 people work.
The corporation is the biggest producer of mineral fertilizers in Sub-Saharan Africa, the biggest producer of polyolefins in West Africa and the third biggest producer of synthetic gloves in the world. The corporation is also an integrated producer of cotton and synthetic yarn.