OREANDA-NEWS. July 14, 2008. Uzbekistan is implementing a number of programs on modernization of production and launching new ones to satisfy increasing demand for construction materials in home and foreign markets.

The Head of analysis and development department of O’zqurilishmateriallari JSC, Akbar Muhitdinov stated that the presidential Decree “On deepening of market reforms and acceleration of development of construction materials industry” ensuring to increase output and extend the range of construction materials, develop and introduce new technologies and guarantee rational territorial location of construction industries played great role in the development of this sphere. The country has implemented 114 of 122 projects indicated in the document.

The investment demand of the Construction Industry Modernization, Technical and Technological Reequipping Program for 2007-2011 approved by a presidential decree is USD 350 mln. The program will increase cement output in Uzbek cement works by 2,2 mln tons including 1 mln tons of packaged cement, 3,3 mln slates, 60 thousand tons of dry mixture, 10 million square meters of gypsum plasterboard and 1,4 mln bottles and jars a year.

At the moment the JSC “O’zqurilishmateriallari” is going to launch production of construction glass with annual output of 10 mln square meters (project costs USD 70 mln), 3 mln square meters of ceramic tile a year (USD 9 mln) and 150 thousand medical ceramics (USD 9 mln). At present the company is carrying out feasibility study and feasibility analysis on these projects.

Specialists of JSC “O’zqurilishmateriallari” developed a conception of cement industry development of Uzbekistan for 2008-2012 to extend cement output by modernizing and constructing new technological lines in cement works in many labor-abundant regions of the republic. Particularly, the conception ensures step-by-step construction of six cement works having total capacity of 9,5 mln a year. Here the investment demand is nearly USD 1,415 bln. The new cement plants will be constructed, using direct foreign investment.

Within the conception of cement industry development of Uzbekistan the Korean Natural cement Corp. Ltd in partnership with Uzbek investors set up the JV Natural cement Group to construct in 2008-2010 a cement plant with capacity of 1,7 mln tons. The Natural cement Corp. Ltd owns 75% and the Uzbek party 25%. The Korean partner’s investment is to fund the project.

The “O’zqurilishmateriallari” JSC says that last year the Uzbek cement industry produced 10% more cement than in 2006 and exceed the six-million rate.  The main factor of cement growth rate was increasing demand in Uzbekistan and neighboring countries and investment attractiveness of cement industry.

The cement demand of Uzbek housing industry is nearly 4 mln tons and taking into consideration the annual growth rate of 20-30%, it may increase up to 8-8,5 mln tons by 2012.

Taking into account the development of infrastructure, industrial and social establishments, the annual demand by this time may be nearly 12 million tons. In turn, experts predict an increase in cement demand of Central Asian countries by 2012.

The investors intend to cover deficit of cement capacity due to construction of new cement works in Uzbekistan having a powerful industrial infrastructure and favorable investment conditions. Even today Uzbekistan can export its cement surplus of 1,300 thousand tons to foreign markets and launching of new cement works will increase this potential several times.