JV with Chinese cos to build new cement plant in Uzbekistan for $204
TASHKENT. July 21 (Interfax) - Uzbekistan is planning to build a new cement plant at a cost of $203.9 million in Buloqboshi District in the Andijan Region of Uzbekistan.
According to the decree published by Uzbek President Shavkat Mirzieyev, which confirmed the technical and economic parameters of the investment project, the projected capacity of the plant will be 1.2 million tonnes of Portland cement per year. Construction will be carried out by joint Uzbek-Chinese venture Shangfeng-Bridge of Friendship, created to implement the project. The founders of the JV are Chinese companies Zhejiand Shangfeng Building Materials Co. Ltd and Tunli with Uzbek LLC Juydam Ta'mir Qurilish.
The project will be financed through direct foreign investment and loans totalling $136.3 million, a $14.9 million loan from Uzpromstroybank and $52.7 million of the JV's own funds.
The feedstock for the plant will be the Sultanabad clay deposit, the Shirmanbulak 3 limestone deposit in Andijan Region and the Kamyshbashin 1 gypsum deposit in Fergan Region.
The JV LLC Shangfeng-Bridge of Friendship has been provided with preferential tax and customs rates as part of the implementation of an investment project.
There are currently seven cement plants operating in Uzbekistan with a total installed capacity of around 9 million tonnes. The biggest are OJSC Qizilqumsement with 3.08 million tonnes, OJSC Akhangarancement with 1.8 million tonnes and OJSC Kuvasaicement with 920,000 tonnes. The cement making industry accounts for around 70% of total saleable goods in the contrucstion sector in Uzbekistan.
