Uzbek-Chinese JV to build a cement plant in Uzbekistan

TASHKENT (TCA) — A new cement plant with a capacity of 1.2 million tons of Portland cement per year will be launched in Buloqboshi district of Uzbekistan’s Andijan region in September 2019, the Jahon information agency reports.

The President of Uzbekistan has approved the basic technical and economic parameters of the investment project. The total cost of the new production facility is estimated at $203.9 million. The facility will be built by the joint Uzbek-Chinese Enterprise Shangfeng-Bridge of Friendship, which incorporates two Chinese companies Zhejiang Shangfeng Building Materials Co. Ltd and Tunli, as well as the local investor Juydam Ta’mir Qurilish.

The Chinese partners will attract a total of over $136 million of direct foreign investments and loans to the project. The funds will be channeled to the procurement of materiel, equipment, machines and mechanisms, components and parts of tooling, instruments, vehicles, spare parts, tools, software, development of technical and project documentation.

The construction and assembly works will be financed by the $14.9 million loan of Uzpromstroybank, and all external infrastructures, including electric and gas networks, roads, railways and water supply system will be financed through the joint venture’s funds and $52.7 million of additionally channeled foreign investments.

Sultanobod deposit (clay), the Shirmonbuloq III deposit (limestone) in Andijan region and the Qamishboshi I deposit (gypsum) in Ferghana region will be the feedstock base for the plant.

The head of state provided the joint venture with a wide range of benefits and preferences. In particular, the joint venture is exempted from corporate income tax, tax for the improvement and development of social infrastructure, property tax for legal entities, mandatory contributions to the National Road Fund for five years after the launch of production.

In addition, the company is exempted, until October 1, 2019, from customs payments for imported materials, machinery and equipment, specialized vehicles, spare parts, components, tools and technological equipment, fuel, and metal products, as well as from the payment of the added tax for works and services performed by non-residents.

There are five large cement plants in Uzbekistan today: Kyzylkumcement, Akhangarancement, Kuvasaycement, Bekabadcement, and Jizzakh Cement Plant. Their total capacity exceeds nine million tons of cement per year.

Sergey Kwan


Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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