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October 19, 2015


POLItiCs. 2

President of Uzbekistan Islam Karimov Attends CIS Summit in Kazakhstan. 2

economy.. 3

Domestic Manufacturers Supersede Imports. 3

11th International Uzbek Cotton Fair.. 7

Contracts for the supply of 700 thousand tons of cotton and textile exports for $800 million signed  7



President of Uzbekistan Islam Karimov Attends CIS Summit in Kazakhstan

President of the Republic of Uzbekistan Islam Karimov visited the Republic of Kazakhstan on October 15-16 and took part in the session of the CIS Council of the Heads of State.

Major events of the summit meeting took place October 16.

Leaders of the Commonwealth of Independent States discussed the prospects of cooperation within the framework of the organization and exchanged views on the pressing issues in regional and international affairs.

Interaction in the security realm received special emphasis during the highest-level session.

The President of Uzbekistan stressed in particular the appropriateness and timeliness of the CIS summit in view of the growing tension and swiftly changing situation in the near and extended environs.

Of particular concern is the mounting threat of radicalism, terrorism, extremism and drug trafficking, as well as the escalating magnitude of conflicts and confrontations. Grave anxiety arises also over the enduring global financial and economic crisis and the socio-economic circumstances in the Commonwealth nations.

According to the head of our state, amid these rather intricate developments, any meetings and exchanges of views, joint search of solutions to the quite alarming situation can only be of use.

Speaking of the importance of the summit, Islam Karimov stressed the positive and significant role the CIS continues to play. The meeting is in demand that is dictated by life itself, by the prospects of our common development.

“In the Commonwealth, we see an institution that provides extensive opportunities to maintain direct interstate dialogue, to swap opinions and discuss current issues, address disputes and disagreements between the parties, building on the mutual interests and the potent normative base as well as the worked-out instruments and mechanisms of interaction. The CIS serves as a vital platform to elaborate mutually acceptable approaches, coordinated practical measures for the active use of the existing potential in the field of trade and economic cooperation, in preempting and countering extremist activities and, what is crucial, to maintain communication among citizens in the post-Soviet space and address everyday issues,” the President of Uzbekistan insisted.

The most critical factor in the importance of the CIS, according to Islam Karimov, is the consolidation of cooperation in the field of transport communications and transit by providing mutual benefits and preferences. It is equally essential for the implementation of a coherent and effective tariff policy, as well as the design and development of new mutually advantageous transport routes.

At the same time, as the leader of our country underscored, one has to point out that with the emergence of other interstate entities in the post-Soviet space, the agenda of meetings of the Council of the Heads of State and other statutory bodies of the CIS is in most cases of a general, framework character, and the issues included in it by no means have any relation to the developments unfolding today in the Commonwealth; in fact, the issues raised are cut off from reality.

Uzbekistan’s President cited the current meeting as a fresh example to the argument, the session whose agenda was over-burdened by trifling issues in diverse areas of multilateral interaction, namely, appeals, setting up of coordination commissions, information on the execution of previous decisions, etc. And the solution offered in this situation is that each of these intergovernmental organizations, the CIS and the Eurasian [Economic] Union should have their own agendas and programs of action, and that they should not replace or duplicate each other, in short, they ought to complement each other.

Islam Karimov expounded also on the assessment of the state of affairs in Afghanistan with direct relevance to our region.

The current situation in that country, where the fratricidal war has been going on for more than 35 years, can be described as a sluggish confrontation of the warring parties. Recent developments in the border city of Kunduz showed a complete lack of coordination and inaction of the government in contrast to the organized vigorous action of the Taliban, resulting in the capture of the town by the latter for a few days.

President Islam Karimov stressed that deep concern and anxiety is caused also by the regrouping of gang units from southern to northern and north-eastern Afghanistan, along with the mounting tension in border areas. Latest attempts to conquer certain parts of the country by the Taliban indicates that the movement still wields considerable capabilities. Meanwhile, the Afghan armed forces are not yet able to confront the Taliban on their own, while the government has been incapable of controlling the security situation in the nation.

In view of the current processes in place in Afghanistan and wary of the bitter experience of Iraq, a growing number of analysts are inclined to advocate increasing the number of ISAF troops, whose presence should be extended for several more years. And there is every good reason for that.

Nevertheless, no matter how the developments unfold in Afghanistan, there is no other solution to the Afghan quandary – in our firm conviction – but peace negotiations, political negotiations and search for compromise between the warring sides under the auspices of the United Nations. There is simply no other way out, the head of our state persisted.

At the end of his speech, Islam Karimov congratulated the Kyrgyz Republic on the assumption of presidency in the CIS and wished President Almazbek Atambaev every success in carrying out this important duty.

(Source: UzA)


Domestic Manufacturers Supersede Imports

The industry of construction materials ranks among Uzbekistan’s leading industries. Large-scale infrastructure projects in settlements have been pushing its development.

Uzbekistan is rich in mineral resources. Over 520 deposits of brick, cement, expanded clay materials, saw stone, gypsum, limestone, aggregates for concrete and others have been explored on the country’s territory. They are the platform for the production of bonding agents, thermal insulation and roofing materials. There are also ceramic, glass, asbestos and other manufactures.

The industry provides the construction sector with all kinds of materials, including cement, lime, gypsum, walling, roofing, finishing and waterproofing materials, and sanitary ceramics – more than 100 kinds of basic construction materials. It meets the needs of the domestic market, and exports big lots of cement, glass, roofing materials, marble and granite slabs. The priorities of development of construction materials are entailed by the needs of the country’s economy and social sector.

The appearance of the Uzbek cities has changed drastically over the years of independence. Many unique objects like bridges, houses and cultural institutions have been built; a new subway line was commissioned. The country’s capital and its regional centers have been turning into modern cities of high culture and architecture. Scaled construction of new and reconstruction of existing industrial facilities, housing in urban and rural areas, schools, medical institutions and other social and service fecilities has been in progress. All transformations have been made possible thanks to the supply of quality and modern construction materials.

“The annually developed national investment and localization programs are regarded as important regulatory documents. They include promising projects, stages of introduction of advanced technologies, and establishment of manufacturing facilities for production of new kinds of output,” says the ‘Uzstroymaterialy’ department head Islom Arslonov. “The manufacturers of construction materials have been privatized in line with the Presidential Decree ‘On the transformation of the Uzbek State Concern on the Production of Construction Materials ‘Uzstroymaterialy’ into the joint-stock company ‘Uzstroymaterialy’ of May 29, 1997 and the Resolution of the Cabinet of Ministers ‘On measures of the state support for the development of production of construction materials’ of May 30, 1997. Today, the company unites more than 120 enterprises with a total workforce of 18,600 people.”

In order to meet the needs of the domestic market, Uzbekistan has adopted and implemented the programs of development of construction materials industry for 2005-2010, modernization, technical and technological extension for 2007-2011, as well as certain measures on the implementation of the most important projects for 2009-2014. 38 projects on the production of binders, walling, roofing and finishing materials were implemented under the national program the ‘Year of Rural Development and Improvement’. 95 projects were carried out in the framework of the national program the ‘Year of Small Business and Private Entrepreneurship’. Manufactures of gypsum board, burnt bricks, plastic windows and doors, plastic pipes, aluminum profiles, sandwich panels and roofing materials have been established.

The Presidential Decree ‘On enhancing economic reforms and accelerated development of the construction materials industry’ of March 24, 2005 was a powerful impetus for the dynamic growth in the sector since it stipulated the increase and diversification of production of building materials, introduction and development of new technologies, and ensured the rational territorial distribution of industrial facilities. The document has empowered the commissioning of enterprises producing dry mixes, polypropylene pipes for hot and cold water, foam concrete, acrylic sanitary ware, vermiculite, stone cladding, wall and roofing materials, paints, lacquers and other modern materials.

The president of Uzbekistan signed a Decree ‘On additional measures to intensify the production and improve quality of walling materials’ on June 19, 2009 with the increasing demand for high-quality burnt bricks. The act envisaged the increase of the production of high-quality wall materials through the establishment of new and upgrading the existing production facilities, introduction of modern energy-saving technologies that reduce the cost of finished goods and cut the expenditures. 175 new investment projects with total capacity of 844.2 million conventional bricks were carried out within short period of time at the forecast of 455.3 million pieces. 951 brick plants with total capacity of 3.1 billion pieces are currently operating across the republic.

Cement products enjoy the highest demand. Over the past 15 years the related enterprises have increased their production capacity from 3.28 to 7.46 million tons. According to estimates, this year, cement plants will produce 500,000 tons of finished products more against the last year. It is expected that investments in the cement industry will double the current production capacity by the year 2020. Eventually, the total annual capacity of cement plants might reach 16.7 million tons in five years.

The ‘Akhangarancement’ plant has launched the production of wet-mud process with the total annual capacity of 1.74 million tons of cement. Employing 1,200 people, the company produces mineral fiber, acoustic panels and refractory bricks. Previously, the plant’s capacity made up only 450,000 tons of cement per year. The modernization, technical and technological extension has made it possible to increase the production of marketable products. For instance, furnace and mill cases have been renovated; mining equipment, gearboxes, compressors and engines have been purchased. Over the next three years it is planned to put into operation a new dry process production line. After its launch the plant’s capacity will exceed 4 million tons per year. Annual energy savings will reach 15 million kW/h, and 233 million cubic meters of natural gas.

The ‘Bekobodcement’ Company has been using both wet and dry methods. The new line for the production of dry process clinker with the annual capacity of 750,000 tons was put into operation in 2013. The company is planning to build a grinding station with the capacity of 1 million tons of cement in Angren. Under the Program of Enhancing Energy Efficiency of Industrial Enterprises, the ‘Bekobodcement’ Company has scheduled the construction of the second line of the dry process clinker with the production capacity of 750,000 tons per year.

The Almalyk Mining and Metallurgical Mills has signed a contract with the Turkish ‘Dal Teknik Makina Tigaret Ve Sanayi AS’ to expand the capacity of its cement plant in the Jizzakh region. The partner will develop the working documentation of the technological process, supply equipment and carry out construction and turn-key commissioning works. That would increase the production capacity of Portland cement to 1 million tons per year. Launched last March, today the plant ranks among the country’s most advanced ones with the capacity of 350,000 tons of white cement and 760,000 tons of Portland cement annually. About 70% of all products is exported.

Economic entities in many regions of the country have been strengthening the capacity of the industry. The production of more than 30 kinds of construction materials in line with international standards has been developed over the last years. The ‘Moderna Keramik Industries’ JV in Fergana, for example, has carried out a project on the establishment of the production of ceramic tiles with the capacity of 1 million square meters per year. The company has created 100 new jobs and has been producing import-substituting, competitive and quality products. A joint Uzbek-American venture ‘PentUz’ in the Tashkent region manufactures soft roofing materials. The company produces five million square meters of products per year, using the latest technologies and meeting the European quality standards.

‘Knauf Gips Bukhara’ JV has launched the production of gypsum board with a capacity of 20 million square meters according to the ‘Knauf’ company technology. The world-known German company invested €35 million in the project. The production is based on advanced technologies and is fully automated. Urban and rural enterprises produce sills, architraves, keystones, helpers, pillars, heat-insulated cladding panels, moldings of foam polystyrene, sandwich panels, decorative cladding panels, aerated concrete, chemically precipitated chalk, facing architectural bricks, tiles and other products.

A new stage in the development of rural housing construction was entailed by the initiative of the state’s leader after announcing the year 2009 as the ‘Year of Rural Development and Improvement’, and adoption of the national program, based on the idea of ‘the rural development will ensure the improvement of quality of life and country’s prosperity’. The program had paved the way to improving the quality of life of the rural population, streamlining the architectural planning of villages, and the construction of suitable housing and social facilities.

Rural houses are built of domestic building materials. Domestically produced cement, rolled metal products, burnt brick, heating appliances, windows and other stuff are delivered to builders at discounted prices. It is worth to note the constantly controlled quality of raw materials. The use of environmentally friendly, durable, and energy-saving materials has been of special focus. For example, construction mixes have been effectively used as binders along with cement, lime, and gypsum. To date, the number of domestic manufacturers of such products has exceeded 40. Modern polymer pipes have replaced the previously used metal pipes, plastic panels – are used for finishing walls and ceilings, and iron and aluminum radiators are applied for heating. The roofs are covered with metal tiles. All these products are supplied by domestic producers.

“We are building 550 standard design houses on 16 blocks this year,” says director of Syrdarya branch of ‘Qishloq Qurilish Invest’ engineering company Qosimhon Akbarov. “The works involved 48 contractors. We commission the facilities on time owing to uninterrupted supply of construction materials, so the new residents have no complaints. Most of them are sold at preferential prices. The materials are delivered from many regions of the country. All the products have quality certificates, and are not inferior to imported counterparts in their characteristics.

Modern design housing construction in rural areas and integrated development of rural settlements is a long-term government program, which aims at improving the living standards of the rural population. The contractors will be continuously provided with locally produced construction materials. They must comply with the requirements of environmental safety, durability, high heat and sound insulation, manufacturability, low energy intensity of production, and the optimal cost of production and operation. The ongoing work is expected to make the towns and villages of the republic even more beautiful, raise the construction technologies to a new level, and improve the welfare and living conditions of the population even in the remotest areas of the country.

The ‘Uzstroymaterialy’ has been implementing 11 projects worth $227.3 million in line with the ‘Program of measures on ensuring structural reforms, modernization and diversification of production for 2015-2019’. The ‘EMG San Ceramic’ LLC in the Tashkent region will establish the production of sanitary ware – sinks, wash basins, cisterns, toilets and bidets, with the capacity of 350,000 pieces per year. The ‘Qyzylqumcement’ Company in Navoi is planning to build up new capacities for the production of lime and concrete slabs. It is envisaged to carry out scaled works on modernization and reconstruction of the existing facilities, and technical extension of enterprises.

The ‘Jizzakh Mega Industrial Invest’ is getting prepared to establish the manufacture of continuous basalt fiber for the production of valves and other environmentally friendly products worth $51.8 million. The Iranian company EMG (‘Ehsan Maybod Manufacturing Group’ LLC) has been implementing a project on the production of ceramic tiles in Yuqorichirchiq district. The promising priority projects with the involvement of foreign investments and loans have been identified. $100 million will be allocated in the next three years to the establishment of production of thermally polished glass at ‘Bekobod Uz Oyna’ LLC. It is planned to build a cement plant in Qorauzyak district of Karakalpakstan. ‘Jizzakh Stone Quality’ LLC in the Jizzakh region will establish the production of finishing materials based on cement.

In order to drastically advance the level and the role of private ownership in the national economy through enhanced privatization and sale to investors, especially to foreign ones, increase the state shares and assets in the authorized capital of enterprises, and hence ensure the modernization and technological renewal of manufactures, and establish the production of goods that would be competitive at the domestic and external markets, a Resolution of the President of the Republic of Uzbekistan of April 28, 2015 has approved a list of joint stock companies, the government share and assets of which would be subject to selling to strategic foreign investors. With regard to the construction materials industry, they will be offered government-owned shares in the authorized capital of the ‘Quartz’ Company, the ‘Qyzylqumcement’ Company, ‘Okhangaron-Shifer’, ‘Samarkand Marmar’ and ‘Toshkent Qurilish Mollari Kombinati’.

In the first half of 2015 the construction materials industry in Uzbekistan had taken the lead in terms of establishment of new and modernization of existing production facilities. According to the Ministry of Economy and the State Statistics Committee, in six months the number of newly created and upgraded facilities in the industry has exceeded 660. This is one third of the total number of new and upgraded production capacities in the first half of the current year. Enterprises manufactured products worth 2.11 trillion soums (currency rates of CB RU from 19.10.2015   1$= 2649.22 soums), which is 11.3% more YOY. Compared with the same period last year, large enterprises of the republic have increased the production of crushed stone, sand, Portland cement, marble, travertine, alabaster and their derivatives. The production volumes of gypsum, lime, concrete, construction solutions and mixtures, non-refractory roofing tiles, non-refractory ceramic bricks, fiber cement products, aluminum doors, windows and frames has increased.

The construction materials industry provides the construction sites with cement, lime, plaster, walling, roofing, finishing and waterproofing materials, and sanitary ceramics – a total of over 100 kinds of basic construction products. The industry meets the needs of the domestic market, and exports much of cement, glass, roofing materials, marble and granite slabs.

(Source: «Uzbekistan Today» newspaper)

11th International Uzbek Cotton Fair

Contracts for the supply of 700 thousand tons of cotton and textile exports for $800 million signed

In the period of October 15-16 Tashkent hosted the XI international Uzbek cotton and textile fair.

The event once again gathered the leading participants of the world cotton and textile market. This year it was attended by over 1,000 representatives of firms and companies from 40 countries of the world.

During the two days, Uzbekistan as one of the most important participants of international cotton market provided an opportunity for representatives of the cotton industry, textile companies and trading agents not only to meet and discuss forecasts and trends of the world cotton market, available favorable conditions for attracting foreign investment in the development of the textile industry of Uzbekistan, but also to participate in fair and exchange trades, to sign direct trade contracts for the supply of cotton fiber and textile products.

In general, following the results of the XI International Uzbek cotton and textile fair, a number of contracts and agreements, including for supply of 700 thousand tons of Uzbek cotton and exports of textile products worth over $800 million were signed.

Thus, the international Uzbek cotton and textile fair has given a new impetus to the further development of market mechanisms of cotton fiber, improvement of economic relations between Uzbek producers and buyers and has become one of the most important and significant events of world cotton community this year.


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