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October 30, 2015


economy.. 2

Uzbek Food Industry’s output reaches 3.23 trln. soums in Jan-Sep. 2


Localizing Success. 2

investments. 5

Export Capacity. 5

sport.. 5

Great success of Uzbekistan taekwondo team.. 5



Uzbek Food Industry’s output reaches 3.23 trln. soums in Jan-Sep

Companies of the Association of Enterprises of Food Industry of Uzbekistan increased production of industrial goods by 22%year-on-year in nine months of 2015 and reached 3.23 trillion soums (currency rates of CB RU from 30.10.2015   1$= 2677.75 soums).

According to the Association, the enterprises increased production of confectionary products by 78.8%, margarine – 62%, sugar – 41%, milk and dairy products – 9%.

In particular, Uzbekistan produced 180.2 million liters of beer, 398,200 tonnes of sugar, 462 tonnes of butter, 469 tonnes of meat and meat products.

Within the localization programme, the industry’s enterprises manufactured goods for 56 billion soums. The prime cost of products fell by 34.5 billion soums or 10.3% in the result of implemented measures in nine months of 2015.

The volume of exports of the enterprises made up US$46 million in nine months of 2015, which grew by 8.5% year-on-year.

The enterprises in the reporting period used investments for US$46.2 million. In January-September 2015, some 292 billion soums were directed to realization of 1,050 projects.



Localizing Success

The 9th International Industrial Fair and Cooperation Exchange is in full swing in Tashkent.

The economy of Uzbekistan is facing new challenges. The global economic crisis has seriously shifted the export maps of many countries by toughening competition and making it necessary to introduce flexible, energy-efficient and competitive models of real sector development.

The national industry of Uzbekistan has its own recipe for further development: cooperation based on which the country comes up with new products able not only to compete with global leading producers in the internal market but also to considerably expand the export flows.

For a ninth year running, October has become a center of attraction for the real sector of Uzbekistan’s economy. These days, in what has become a tradition, all the major platforms and pavilions of UzExpoCenter are occupied by national companies that not only present their products, but also search for partners for further development. This is truly a gathering of Uzbekistan’s industrial flagship companies that have mastered production of competitive products that are well-known not only in the country, but also far beyond its confines.

One figure will suffice to evaluate the scope of the fair. Last year, export contracts were signed to the tune of more than $7.2 billion. The top three buyers of Uzbek-made products included Russia (29%), Kazakhstan (22%) and China (10.5%). This year, producers are planning to surpass this mark, given that all conditions are available for that.

In keeping with tradition, the event is split into two phases: spring and autumn. In April-June, territorial fairs were held in all regions and concluded with six industrial expos in the capital city. They were attended by nearly 90,000 people. Contracts worth 377.5 billion soums (currency rates of CB RU from 30.10.2015   1$= 2677.75 soums) (a 24.5% increase) were concluded and products worth $180.8 млн (a 8.4% increase) were sent abroad. To boot, agreements worth 617.9 billion soums (a 5.2% increase) were inked in industrial fairs in Tashkent.

This year, the fair has demonstrated an unprecedented scope. The number of companies planning to presents their goods and study cooperation projects was so large that organizers had to build two more temporary pavilions. Currently, the sprawling expo platform is hosting over 2,000 national firms, companies and enterprises that are presenting their products. That translates to over 21,000 types of goods, whose production was localized in the country in recent years. These are numbers behind which are modern capacities and tens of thousands of new jobs.

As always, the leader in the process of localization and import substitution is the national automobile industry, whose representatives have taken the major part of the available pavilions of UzExpoCenter.

Today, Uzbekistan’s auto industry represents a series of companies furnished with state-of-the-art equipment that allows for production of world-standard commodities and makes to possible to quickly and flexibly reorient production to the needs of the market. Under the Program of Localization and Import Substitution, the sector has put into place production of car bodies, bumpers, inner sheathing for salons, seats, instrumental panels, plaits, wires as well as gas tanks, wheels and batteries.

These efforts yield results permanently. The creation of new localized companies is one of the incentives for the further development of the sector. They are expected to demonstrate the potential of the current capacities of enterprises as well as ensuring production of import-substituting products.

One simple example: several months ago Uzavtosanoat and South Korea’s INZI AMT Co., Ltd reached a deal to construct a new plant that will produce aluminum details by way of high-precision pressure casting for GM engines. The South Korean company will provide the Uzbek partner with its technologies and know-how. It is expected that the facility will be launched at the end of 2016. The total worth of the projects is upwards of $13.2 million. The annual capacity of the enterprise will reach 150,000 sets of components.

Another interesting project is production of light emergency and rescue vehicles on the basis of Damas minivan. GM Uzbekistan in collaboration with the Ministry of Emergency has already primed a technical performance specification and intends to produce 14 test samples. The vehicle will have a seating capacity of five people with the necessary equipment and tools used during rescue operations. The company will produce automobiles only while special equipment for them will be made by other companies. According to the Ministry of Emergency, each of the 17 emergency and rescue sections deployed across the Republic needs 2 to 3 such vehicles.

The popular Damas minivan was taken as the basis for yet another novelty this year. On July 27, GM Uzbekistan launched serial production of subcompact passenger-and-freight Labo vehicles. It is a modification of the Damas model with an open board body, which is intended for the transportation of cargo. With the capacity under 550 kg, it has a three-cylinder engine of 0.8 liters and five-speed manual transmission. The car is already very popular among domestic delivery services for its maneuverability and fuel efficiency. It is estimated that the Khorezm plant with annually produce up to 5,000 cars. The project’s total cost exceeds $5.9 million.

Meanwhile, the domestic auto industry has been facing new challenges, which primarily come to the production of competitive vehicles with the increased share of localized products, the constant updating of the model range based on consumer demand. The Uzbek-German joint venture JV MAN Auto-Uzbekistan might serve as a successful example of the embodiment of all the abovementioned aspects with its trucks and specialized equipment for the pivotal infrastructure projects in Uzbekistan. Previously, the road sector had purchased equipment mainly abroad, while now the bigger part of it is produced at the MAN factory in Samarkand. The plant has also mastered the production of tankers and other specialized equipment to ensure the appropriate functioning of civil aviation in Uzbekistan.

A new plant of UzAuto Trailer was built in Samarkand in 2011 to be the final ‘block’ in the building of production and maintenance of MAN heavy machinery in Uzbekistan. The key mission of the new company was to produce hinged and slinging equipment for car bodies and semi-trailers, container trucks, car carriers, tarpaulin semi-trailers and other products. The design capacity of the plant is estimated at 3,000 items, including 2,000 semi-trailers and 1,000 hinged equipment. It is also planned to manufacture a wide range of automotive equipment for various sectors of the country, including tipper bodies, trailers, container trucks, tent, isothermal semi-trailers and vans.

Domestic steelmakers have been keeping up with the automakers with a range of promising projects for the nearest future. According to the Deputy Head of the Uzmetkombinat information center Akmal Sharipov, the plant has been implementing an extensive investment program, which is based on the localization and import substitution.

“We are demonstrating the products the manufacture of which we have established in 2015 under of the Program of Production Localization, and which we also export. We see the participation of our company in the country’s major industrial forum as an important factor for stable operation in the coming years, as we usually sign many contracts here. For example, under this year’s territorial Industrial Fair and Cooperation Exchange, we have signed contracts for the purchase of raw materials and equipment worth 5.6 billion soums. The contracts we had signed at the sectoral fair totaled 6.5 billion soums. The contracts on selling our products have amounted to 5.6 billion soums.

In September, the company has commissioned a shop on the manufacture of basalt-based thermal insulation materials. Owing to its good production and resource capacity, the plant has been successfully producing high-quality thermal insulation materials like mineral wool, rigid and semi-rigid slab, wired mats, which are demanded in many countries.

Today, Uzmetkombinat supplies its new products to the construction, chemical, oil and energy sectors. It is noteworthy that it has allowed cutting imports of thermal insulation materials in Uzbekistan, saving foreign currency. According to expert estimates, the company’s basalt products have no counterparts in Uzbekistan, and do not yield to the models of the leading manufacturers in competitiveness and availability.

Other big and promising projects include the development of deposits of titanomagnetite ores in Tebinbulak of Karakalpakstan. Its approved reserves amount to 450 million tons of ore, and the total reserve is estimated at more than 3 billion tons.

The project envisages the development of an open pit with annual ore production of 22 million tons, the construction of mining and processing plant, as well as the metallurgical complex for the production of cast iron with an annual output of 1.5 million tons. The launch of a new field in Uzbekistan will allow producing steel from the local raw materials.

O‘zbekyengilsanoat has traditionally presented one of the most striking stands, distinguished with its diversity. This year’s exposition of the company has presented over 130 enterprises of the sector with their finished products for export: knitted fabric, knitted and sewing, hosiery, home textiles, specialized clothing. Upon the exhibition they hope to sign contracts worth three times more year on year.

“The participation in the country’s largest industrial forum is a good opportunity for companies to present their products, get acquainted with the technical innovations of production, achievements of allied sectors, to identify the needs in materials and components for the near future, and conclude contracts without tenders. At last year’s fair more than 100 light industry enterprises signed supply contracts for more than 40.7 billion soums,” said the Director of the Agency for Marketing and Advertising of Textile Products under O’zbekyengilsanoat Company Davron Akbarov.

The stands of domestic mechanical engineers have presented an interesting innovation. The Uzbek-German joint venture Uz CLAAS Agro is planning to start serial production of specialized tractors adapted to work in cotton fields in 2017. The first four prototypes are currently running in farm fields in different regions of the country.

“This is the first tractor of this kind in the world: it is based on the model of the German AXOS 340, but modified by Uzbek engineers. For example, they altered a wheelbase shifting from the traditional European four wheels to three as a better option for Uzbekistan. The machine was assembled at the facilities of the German company CLAAS in France. Powered by a 100 hp engine, the tractor can deal with not just inter-row cultivation and sowing of cotton, but its cultivation, spraying and chopping,” said O’zbekyengilsanoat Head of Marketing and Sales Agzamjon Ozodov.

The resolution on the capacity of the line will be made after completion of its piloting in 2016. The specialists will concurrently address the issues of localization of production of certain components in Uzbekistan. Besides, next year the company is planning to launch the manufacture of the like modification of the tractor, but in the usual four-wheel design. It is universal, so it can be used for various agricultural works. Last year, Uz CLAAS Agro sold 500 tractors and 220 harvesters.

Uzbekistan Airways National Airline ranks among the major and permanent members of the industrial forum. It has spotlighted the airline enterprise of Uzbekistan Airways Technics, which deals with maintenance of western aircrafts, repair of their interior and components, as well as the painting of all types and modifications of aircrafts. In a short time it has gained recognition not only at home but also abroad, annually serving about 10 foreign aircrafts.

The 9th International Industrial Fair and Cooperation Exchange will last until November 2, 2015, and will undoubtedly be a landmark event for the representatives of the industrial sector. It is a platform for shaping a basic package of agreements without additional tenders for the supply and purchase of finished products, equipment, and raw materials through localization and cooperative ties, including the provision of production services. Uzbekistan Today reporters will report on promising projects and new achievements of the domestic industry, which have been empowered by the unique event.

(Source: «Uzbekistan Today» newspaper)


Export Capacity

Uzbekistan and Bulgaria are currently building a joint manufacture of flexible metal hoses of stainless steel.

Today, the domestic market is almost completely filled with similar products by China and Turkey. The company is intending to replace them by better quality and cheaper price in a few years.

The release of the first products is scheduled for late 2015. The company’s capacity will allow producing gas and water hoses of any length and diameter. This year, it is projected to release 100 km of products totaling nearly 1 billion soums (currency rates of CB RU from 30.10.2015   1$= 2677.75 soums). In 2016, the production is expected to increase by more than four times – up to 480 km, and in 2019 it should reach 600 km.

This is a remarkable projection for the domestic market, so a part of the products will be exported. CIS is seen as a priority.

(Source: «Uzbekistan Today» newspaper)


Great success of Uzbekistan taekwondo team

Uzbekistan WTF taekwondo national team won seven gold, four silver and four bronze medals of Kazakhstan Open Championship.

Maksim Rafalovich claimed the gold medal in the weight category of 80 kg, defeating all his opponents. Jasur Bayquziev won the gold medal in the weight category of up to 87 kg. World champion Dmitry Shokin won the tournament in the weight category of over 87 kg.

Nikira Rafalovich and Bahrom Abdullaev clinched silver medals in their respective weight categories, while Temur Uralov was third.

Charos Qayumova, Zukhra Ochilova, Vlada Pan and Nigora Tursunqulova won gold medals in the tournament among youth.

Ulugbek Tukhtasinov and Svetlana Osipova won silver medals, while Sardor Toirov, Zariya Kasimova and Guzal Norboeva became the bronze medalists of the tournament.



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