OREANDA-NEWS. April 21, 2008. The State Property Committee of Uzbekistan (SPC) has put out 100% shareholding of the OSC “Samarqandkimyo” (Samarkand Chemical Plant) with starting cost of USD 20,506 million. Uzbek chemical factories remain hopeful of privatization with foreign investors, reported the Official website www.investuzbekistan.uz.

Terms of the tender, whose results are to be summarized in the second quarter this year state that a company which is ready to offer higher price for the shareholding of the Samarkand Chemical Plant and take responsibility for minimum investment liabilities of USD 7.3 million will be of advantage in the tender.

Last year was rich with events of privatization of Uzbek chemical industries. Particularly, the Spanish MAXAM Corp S.A.U. bought shares of two chemical plants in the country: 49% of the OSC “Elektrokimyosanoat” and 49% of the OSC “Ammofos”. Russia’s LLC “Monolit” won a tender to buy 85.2% shareholding of the Kokand Superphosphate Plant, the only ammonized superphosphate manufacturer of Uzbekistan. The total cost of these contracts was USD 44.06 million with aggregate investment liabilities of USD 64,2 million.

The Uzbek market of chemical industry attracts foreign companies, primarily for its convenient geographical position that allows them deliver their products to markets of the CIS, Asia and Middle East. The foreign investors are also interested in good resource basis, especially Tubegatan deposit of potash salt and Jeroy phosphorite deposit.

The Samarkand Chemical Plant was set up in 1954. Last August the plant launched testing production of a new nitrogen-phosphor-calcium containing fertilizer (nitrocalciumphosphate) with production capacity of 100 thousand tons per year.

Its modernization program ensures to develop, by the end of 2008, production of the new fertilizer worth USD 7,7 million with annual capacity of 250 thousand tons. The project will be financed by the Fund for Reconstruction and Development of Uzbekistan and the SSC “O’zkimyosanoat.”

Specialists conclude that it is a very efficient fertilizer because it contains nitrogen, phosphor and calcium oxide as calcium nitrate, more suitable compound for plants. The new technology is advantageous because instead of deficit sulfuric acid is made of the raw phosphorite of nitric acid and the technology does not produce wastes like phosphoric gypsum.

In February last year President Islam Karimov approved a program of measures for expanding of production and exportation of phosphor-containing fertilizers in the Jeroy phosphorite deposit (Central Kizilkums) until 2010. The program is financed by the Fund for Reconstruction and Development of Uzbekistan and by attracting foreign credits, investments and companies’ own funds.

Generally, the program ensures to develop processing capacity of the Kizilkum Phosphorite Combine that debugs the deposit. It also intended to modernize chemical plants for manufacturing more phosphor concentrated fertilizers. The increase in output of raw phosphor in the Jeroy deposit and modernization of chemical plants will increase aggregate production of phosphate fertilizers from 100,3 thousand tons in 2005 to 169 thousand tons by 2010.