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Uzbekistan to allocate $1.632bn to modernize chemical industry in 2011-2015

Oil&Gas Materials 16 January 2011 15:59 (UTC +04:00)
Seven large projects in chemical industry will be implemented in Uzbekistan within the programme on priorities of developing industry for 2011-2015.
Uzbekistan to allocate $1.632bn to modernize chemical industry in 2011-2015

Uzbekistan, Tashkent, Jan. 16 / Trend D. Azizov /

Seven large projects in chemical industry will be implemented in Uzbekistan within the programme on priorities of developing industry for 2011-2015.

Total project cost of these projects will make up $1.632 billion, of which $1.224 billion will be foreign credits and investments. Other share of investments for $107.5 million will be invested by Uzkimyosanoat state joint stock company, $260 million by Fund for Reconstruction and development of Uzbekistan, and $40 million by commercial banks.

In particular, it is planned to carry out the second phase of the project on expanding production capacities of Dehkanabad Potash Fertilizers Plant in 2011-2013. The capacity of the plant will increase from 200,000 tons to 600,000 tons.

Fund for Reconstruction and Development of Uzbekistan (FRDU) will allocate $110 million and China Eximbank will issue $125 million to project implementation. Uzkimyosanoat will direct own funds to the project.

A complex on production of ammonia and carbamide will be constructed in Navoi region by the end of 2014. IPIC of the UAE will allocate $1.072 billion to the project, Uzkimyosanoat - $80 million, FRDU - $150 million and commercial banks - $438 million. The capacities of the plant will make up 660,000 tons of ammonia and 1 million tons of carbamide a year.

South Korea's DK Cosmetics is planning to create a plant on production of cosmetics products at Navoi free industrial-economic zone. According to feasibility study, the plant will produce 3.24 million units of various products a year. The project cost is $2.2 million. South Korean firm will invest $400,000 to the project, Uzkimyosanoat - $600,000 and commercial banks - $1.2 million.

NeoPlant (South Korea) will continue to implement the first phase of the project on creation of capacities on production of technical silicon in Navou region. Korean company will invest $8.8 million to the project and Uzkimyosanoat - $5.2 million.

The agreement on realization of project on production of technical silicon on the base of Uz-Kor Silicon was inked in March 2010. The expected capacity of the plant will be 12,000 tons a year.

In early 2009, Uz-Kor Silicon carried out exploration work at Tolakul and Kuduk fields in Kashkadarya region and Sarykul field in Samarkand region. The investment volume made up about $1.5 million. The exploration field revealed silicon with purity of 99.8 percent.

Spain's Maxam Corp. will complete modernization and re-equipment carbamide production capacities at Maxam-Chirchiq OJSC in Tashkent region. After reconstruction, the carbamide production will grow to 270,000 tons a year. Total cost of the project is $80 million. Investment of the Spanish company will reach $14.1 million and Uzkimyosanoat will direct $6.7 million.

Maxam Corp. will also modernize AK-72 and AK-72M nitric acid production capacities at Maxam-Chirchi OJSC. Spanish firm will invest $4.4 million to the project. The project is implemented to stabilize current capacities at the enterprise.

The programme also includes a project on creation of capacities on production of haberdashery, children toys and consumer goods for plastic at the base of Jizzakh Plastmassa OJSC. The plant will produce 582 tons of various goods per annum. The project will financed due to resources of Uzkimyosanoat.

Expansion of chemical production and export of separate products are considered as important reserve for fostering activity and stabilization of enterprises of Uzkimyosanoat. In line with the programme, the volume of production of industrial goods at chemical enterprises of Uzbekistan will reach 2018.5 billion soums, which is 41.5 percent more compared 2010 (1426.4 billion soums).

In the first half of 2010, enterprises of Uzkimyosanoat produced goods for 468.7 billion soums, which is up 2.3 percent. In particular, the plants produced 557,000 tonnes of mineral fertilizers, including 482,800 tons of nitric fertilizers and 74,300 tons of phosphorus fertilizers.

Forecast on export of goods was fulfilled with 1.6 percent surplus. The export was expanded due to broadening sales market and chemical products.

In 2010, the chemical enterprises realized several projects in modernization, technical and technological re-equipment. In particulat, Ammofos-Maxam OJSC reconstructed shop on production of sulphuric acid, while Maxam-Chirchiq launched capacities on production of ammonium nitrate of low density. Navoiazot and South Korea's ISU Engineering working on reconstruction of capacities on production of polyvinylchloride (PVC), chlorine and hydrate of sodium based on acetylene.

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