Uzbekistan, Tashkent, Nov.1 / Trend, D.Azizov /
The Uzbekneftegaz national holding company and the Oman Oil Company have signed an agreement to establish a joint venture for polyethylene pipe production in the Navoi free industrial and economic zone (FIEZ), Uzbekneftegaz reported earlier today.
According to the document, the joint venture will be established on the basis of Polietilen Quvurlari (Polyethylene Pipes), which has already started working at the Navoi FIEZ.
Two plastic-pipe production factories worth $12.4 million were commissioned at the FIEZ, including Polietilen Quvurlari worth $7.2 million. Their design capacity is an annual 8,600 tons of polyethylene pipes with a diameter of 75 to 630 millimeters.
Uzbekneftegaz's Shurtan Gas Chemical Complex financed the construction.
According to Uzbekneftegaz, establishing the joint venture and attracting $20 million in investments from the Oman Oil Company will double the enterprise's existing capacity. More than 50 percent of the production will be exported.
The Shurtan Gas Chemical Complex was commissioned in 2001.
Uzbek President Islam Karimov signed a decree establishing the free industrial and economic zone near the Navoi international airport in December 2008.
The Navoi FIEZ will function for 30 years. The term can be extended.
During this period, special customs, currency and tax regimes, simplified entry, stay and exist orders, as well as special work permit for foreigners, will be in force in the zone. Tax preferences will be given to companies with investments over 3 million euro.