The new facilities will be built on the platform of the once unprofitable Onyx Company, which has received a chance for a new lease of life owing to the government’s support.
Experts see the restructuring as one of the most effective and radical ways of financial recovery for companies, and a method of ensuring their stable operation. It appears not a simple process: there is a need to bring the organization of production process in accordance with international standards, upgrade the capacities, and start the production of marketable products. A ‘road map’ on optimization of production facilities and financial recovery of the Onyx Company was purposefully developed last April.
The total cost of the project exceeds $30 million. Experts have decided to implement it in two stages. The first stage envisages the establishment of an assembly shop of lighting equipment with a production capacity of 20,000 pieces per year. The company has procured relevant equipment and created 30 jobs. Today, the company produces 26 designs of chandeliers and five designs of sconces, so the production already brings some economic benefit.
The second phase of the project provided for the establishment of manufacture of glass products. Given the absence of manufacture the technological equipment for the glass production in Uzbekistan, the industry experts have studied the global equipment market and organized a supplier tender, which was won by Stara Glass S.p.A Company (Italy).
The company is currently completing the installation and commissioning works. In the near future it is going to launch the manufacture of 16 kinds of glass articles and 29 types of glassware, including plates, glasses, wine glasses, and more. The level of localization of production will exceed 50%. Today, Onyx is operated by advanced technological equipment in line with international standards. The production process is fully automated and energy-efficient, allowing for production of high-quality items.
(Source: «Uzbekistan Today» newspaper)
The chemical industry is one of the most vital sectors of the Uzbek economy. At present, 14 large production enterprises operate in the sector, all of which are incorporated into the State Joint-Stock Company, Uzkimyosanoat.
The output of these producers is supplied to the leading industries of the national economy, such as the production of mineral fertilizers, plant-protection chemicals, defoliants, film for cotton etc. – for agriculture; sodium cyanide, thiocarbamide and polyacrilamides – for the gold-mining sector, acetate threads and fiber-nitron – for the light industry, caustic ash – for the building-material sector and others.
The enterprises incorporated into Uzkimyosanoat export their produce not only to the republics of Central Asia and the CIS member states, but also to foreign countries, including Great Britain, Belgium, Italy, Greece, Turkey, India and Pakistan.
By the volumes and types of mineral nitrogenous and phosphoric fertilizers, these enterprises are the biggest producers of ammonia, carbamide, ammonium nitrate, ammonia sulfate and phosphoric fertilizers in the Central Asian region.
Over the past 5-6 years, the Uzkimyosanoat enterprises have launched several novel product categories, such as caustic ash, poromeric nitrate, potash chloride, phosphoric ammonium nitrate, carbamide-ammonia mixture, A-grade methanol, sodium nitrate and feeding ammonium phosphate.
The most important condition for the development of the national chemical industry is, without doubt, the attraction of overseas investments and advanced technologies. In 2014, the amount of foreign direct investments attracted to the chemical sector of Uzbekistan reached US $299.34 million. Today, a bunch of joint venture enterprises are successfully operating in the home market. Among them are OAO MaxamChirchiq, AmmofosMaxam, NavoiHunanPulp and NavoiyBeautyCosmetics.
It is also necessary to observe that more than 30 investment projects are being studied within the framework of the Investment Program of the Republic of Uzbekistan and the Program for the Development of the Chemical Industry up to 2020. These projects envisage, among other things, the organization of production of synthetic ingredients, household chemicals, fiber-glass and other product groups with the help of foreign investors.
In particular, active work is in progress, in conjunction with Chinese companies, on the creation of a facility specializing in the production of conveyor lines, and agricultural and automobile tires on the territory of the Angren Free Industrial Zone. Its annual capacity is expected to amount to 100,000 linear meters of conveyor lines, 200,000 agricultural tires and 3 million automobile tires.
Besides, a project to build a chemical complex at the Joint-Stock Company Navoiazot is nearing completion. The facility will manufacture 100,000 tons of polyvinylchloride, 75,000 tons of caustic soda and 300,000 tons of methanol per year.
As well as that, the company’s leaders are elaborating the question of enlisting the cooperation of big-name foreign producers like KC Glass and AekyungIndustrial (Republic of Korea), Mitsubishi (Japan) and others for the implementation of several promising investment projects.
The main factors of business attractiveness of the Republic’s chemical industry are as follows: the availability of all the required raw materials, qualified manpower, developed communications, banking and legal services and relatively cheap power resources. What’s more, investing in the chemical industry, foreign partners get access not only to the market of Uzbekistan with a population of over 31 million, but also to the 300 million-strong markets of the CIS member states.
Besides, the government of the Republic of Uzbekistan has taken a number of important measures aimed at backing the development of the national chemical sector. In this connection, the following documents are worth mentioning: the Presidential Resolution No 1050, “On additional measures to stimulate the expansion of production of indigenous non-food consumer goods” dated 28th January, 2009 and the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No 33, “On perfection of the administrative structure of the chemical industry and measures to improve the agro-chemical servicing of farming” dated 23rd January, 2004.
Today, the process of modernization is in full swing at the industry’s enterprises. It serves the following purposes: the re-equipment of factory workshops, replacement of obsolete machinery and introduction of high technologies.
The creation of modern production facilities that are capable of turning out goods that are competitive enough in the international chemicals market, as well as the realization of projects to modernize and reconstruct the existing industrial enterprises with the help of investments, both foreign and domestic, remain the chief priorities in the development of the national chemical sector in the near future.
In conclusion, it can be observed that rich opportunities are opening up for the development of the chemical industry, forming the backbone of the Uzbek manufacturing, together with such sectors as car making, power engineering and construction. At the same time, attention is now focused on enlisting the cooperation and capital of the world’s leading producers needed to implement investment projects in the chemical industry, all of which are aimed at setting up modern high-tech production facilities as well as at penetrating new markets.
(Source: «Business partner.uz» newspaper)
At a plenary session of the Legislative Chamber, Members of Parliament have considered a Cabinet of Ministers report on the fulfillment of the State Budget as well as budgets of trust funds in the early half of 2015.
The report was preliminarily considered in the committees of the Lower Chamber of the Parliament and political party factions. This has allowed MPs to develop their own positions in relation to the implementation of the country’s main financial document based on the interests of the electorate and parties’ programmatic goals.
The parliamentarians noted that the implementation of crucial tasks and priorities of the 2015 economic program has ensured the maintenance of positive dynamics in the main macroeconomic parameters and creation of a solid foundation for further balanced development of economic sectors and spheres.
Exercising a well-thought-out and sound monetary and tax-and-budget policy has ensured the fulfillment of the income part of the State Budget in relation to predicted parameters by 100.3%, which made up 23.6% toward GDP. Expenditure totaled 23.4% to GDP, which made it possible to come up with a State Budget surplus – 0.2% to GDP.
The budget policy retains its social orientation: 59.2% of its expenditure part was channeled into the development of the social sphere.
Representatives of political party factions and the MP Group of the Ecological Movement of Uzbekistan have expressed their views on the report.
Noting the effectiveness of reforms under way in Uzbekistan, UzLiDeP party members emphasized the growing role of small business and private entrepreneurship in ensuring stable growth rates of economy and in boosting the state coffers. Amidst significant decrease of the tax burden, single unified tax earnings from small businesses and micro firms soared by 22.8% against a similar period last year, which testifies to the effectiveness of the introduced tax concessions and benefits. The MPs also underlined the need to enhance control of fulfillment by state officials of laws related to entrepreneurship and timely notification about changes in taxation and liberalization of responsibility for tax-related violation.
Member of Milliy Tiklanish (National Revival) party faction paid particular attention to the results of the measures taken to support exporter companies and diversification of exports as well as taking national products to new markets. It was noted that amidst persisting instability in global markets the measures taken have contributed to the growth of exports of commodities and services.
The session also focused on the observance by businesses of local tax legislation and effective use of the provided concessions and benefits, strengthening of the income part of local budgets. MPs also noted the need to increase the responsibility of local authorities and governance for effective use of available resources, entry into foreign markets, and rational use of the resources and internal reserves of regions.
Members of the PDPU noted the fact that in the early half of 2015 around 60% of State Budget funds were channeled into the social sphere. They underlined that PDPU is for the provision of target social protection of the population.
The Program of Job Creation and Employment for the Population led to the creation in the first half of the year of 441,800 new jobs, 274,900 of them, or 62.2%, in rural areas. MPs noted the urgency of further creation of jobs for graduates of professional colleges and the need to enhance control of this process.
Adolat (Justice) Party members opined that in the period in question, the major part of the expenses in the social sphere continues to go to education and healthcare. They noted that 1049.8 billion soums in State Budget fund was earmarked for social support and prosperity of the population. Active implementation of measures envisaged by the Year of Attention and Care for the Senior Generation State Program contributed to the enhancement of social support of elderly people. Specifically, 1.5 trillion soums and over $37 million was channeled into implementing the state program. It was noted that members of the faction set up permanent parliamentary monitoring of the fulfillment of the program, in particular targeted use of State Budget funds allocated for its implementation (currency rates of CB RU from 18.09.2015 1$= 2610.89 soums).
Members of the MP Group of the Ecological Movement of Uzbekistan underlined that environmental protection and healthcare are among priority areas of the state policy. This helps carry out a series of measures to protect atmospheric air, water and land resources as well as flora and fauna. Measures are being consistently carried out to boost population access to drinking water and improve sanitary conditions in populated areas. A total of $48.6 million from international financial institutes and 191.2 billion soums in State Budget funds were made available for these purposes.
Taking into consideration the opinions and proposals expressed, the Legislative Chamber of the Parliament approved the report on the fulfillment of the State Budget and the budget of governmental trust funds.
(Source: «Uzbekistan Today» newspaper)
Two international exhibitions, UzStroyExpo and UzEnergyExpo, have kicked off in Tashkent’s Uzexpocenter with the common idea of presenting the latest technological solutions for modernization of the economy. More than 60 companies present their products.
The combination of two exhibitions is seen as a fairly reasoned step. Uzbekistan has been actively developing both directions, concurrently in many ways, so it is vital to establish close links between developers, manufacturers, suppliers and customers of equipment and materials. The ongoing event is the optimal solution, because over the recent years both events have gained the status of a powerful platform for professional dialogue among all stakeholders.
The involvement of foreign companies has been getting impressive with the years. This is vivid evidence of the progress of the national economy, which, despite the global crisis, has been steadily developing. Given the fact that the construction industry ranks among the first industries to be influenced by the impact of the recession and market decline, the steadily increasing volumes of construction of housing, social and transport infrastructure and industrial projects in Uzbekistan prove the correctness of the chosen national development model.
The participation of foreign companies has been promoting the inflow of high-tech equipment in Uzbekistan, which, in turn, improves the quality and range of products.
“Today we can say with confidence that the Uzbek market promises to rank among the most attractive suppliers of industrial equipment in the coming decades,” shares an engineer of the Development Department of the Russian company of Elektrosetstroyproekt Aleksey Marchenko. “This is primarily conditioned by the small impact of external factors on the economy, and the targeted government support of the industrial sector. We have come to Uzbekistan in order to occupy a niche in this promising market.”
It is worth noting the yearly growing number of domestic manufacturers who participate in the exhibitions with competitive import-substituting products. The events of this kind give them a unique opportunity to present their products to professionals and customers.
“Our company sells lighting equipment by the world’s leading manufacturers. Empowered by the preferences Uzbekistan has been providing for the real sector, we can consider the opportunity of localization of manufacture of a part of the imported goods. That would significantly reduce the cost of the final product for the consumer,” told the representative of the Light Center Kirill Petyaev.
(Source: «Uzbekistan Today» newspaper)
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