OREANDA-NEWS. December 04, 2013. South Korea’s Shindong Enercom Inc is constructing the second plant on production of technical silicon in Uzbekistan.

New production capacities on production of technical silicon will be located in the territory of the special industrial zone (SIZ) Angren.

The project is implemented at participation of Shindong Enercom Inc, the State Committee on geology and mineral resources of Uzbekistan and Uzmetkombinat open joint stock company. The sides of the project created joint venture Uz-Shindong Silicon to implement the project. All participants have equal share in the venture.

The project cost is US.67 million, of which US.7 million were foreign investments.

Technical silicon is valuable raw material, which widely used in automobile, aircraft buildings and metallurgy industries. It is expected to export all products, produced at the venture.

The first plant on production of technical silicon was launched in Uzbekistan in 2012. Uz-Kor Siliсon, an Uzbek-South Korean joint venture, commissioned the first line of the capacities on production of technical silicon in Navoi region of Uzbekistan.

Within the project, the processing complex with the capacity of 12,000 and mining comples with the capacity of 39,000 tonnes of ores a year were constructed.

The project with the cost of US.45 million was financed due to foreign direct investments of NeoPLANT at the size of US.65 million and loans of Korean firm for US.3 million.

Navoiazot invested US.2 million of own resources to the project. At the same time, Asaka Bank allocated US.3 million loan.

State Committee on geology and mineral resources of Uzbekistan and NeoPlant created Uz-Kor Silicon JV in September 2008. Each side holds 50% stake in the venture. The charter capital of the venture is US.4 million. Later, Navoiazot became one of founders of the venture in December 2011.

Angren special industrial zone was created on 13 April 2012 in line with the presidential decree in Tashkent region. The zone will function for 30 years.

During operation of the special industrial zone, special tax regime and customs preferences will be applied in its territory. Administrative council of SIZ Angren will provide status of participant of the special industrial zone.