BAKU, Azerbaijan, Dec. 8
By Klavdiya Romakayeva - Trend:
The Japanese Balcom Co. Ltd bought a minority stake in the Uzbek agricultural chemicals manufacturer Ifoda Agro Kimyo Himoya for $10 million, Trend reports with reference to Reuters.
The publication notes that Uzbekistan began to open its economy in 2017, but foreign direct investment from private companies is still rare.
Reuters ranks Ifoda as the country's largest producer of compound fertilizers and crop protection products. The company produces about 100,000 tons of agricultural chemicals per year at its plant in the Namangan region.
Ifoda Agro Kimyo Himoya, which had sales of 211.1 billion soums ($20.4 million) last year and was advised by Central Asian investment bank Bluestone Investment Bank, said it is using the money to accelerate its growth and boost exports.
Balcom Co. Ltd is a privately-owned diversified Japanese holding company that operates businesses in the automotive, real estate, hospitality, and other industries.
Earlier, the government of Uzbekistan approved a road map for the development of the mineral fertilizer industry. It is planned that the total output of the chemical industry in Uzbekistan by 2031 will increase 4.5 times, and exports will grow four times.
At the same time, according to the plans, the share of organic chemistry products in the total production volume will increase from seven to 54 percent.
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