Investment opportunities / By Industry

Construction Materials Industry

Industry development status.

120 investment projects were in Uzbek building materials sector in 2005-2010. Volume and range of building materials has increased through rational placement of production facilities and introduction of modern technologies.

Leading international manufacturers such as Knauf, Keda, FLSmidth, Lafardge, TTIOT, Christian Pffeifer Maschinenfabric GmbH, Mollers, Sacmi, EMG, PEG , CAK and others are contributing to investment projects implementation. 

Modern gypsum-making plant using German companys Knauf technology with annual capacity of 20 million m2 was built at Knauf Gips Bukhara LLC JV in 2011. In 2009-2011, bricks production capacity has increased by 844 million pieces in 2009-2011 across the regional of Uzbekistan .

Annual cement production volume  more than doubled - from 3.2 to 6.8 million tons thanks to commissioning major industrial enterprises as "Akhangarancement" OJSC, "Bekabadcement" OJSC, "Kyzylkumcement" OJSC and "Kuvasaycement" OJSC modernization and reconstruction over the past 10 years. Their full  capacity utilization was reached  in 2008-2011.

Target parameters for the further industry development.

Building materials industrys major challenges include diversification increase, construction products range expansion, export and delivering improved quality and innovative building materials to the domestic market .

Currently,"Bekabadcement" OJSC continues to upgrade existing production facilities including construction of  dry c the new line for 850 thousand tons cement production of dry cement a year. Once commissioned, it will to increase annual cement production by one million tons and create 100 new jobs.

 In 2012-2014 Almalyk Mining-Metallurgical Complex and "Uzstroymateriali" JSC are planning to build a cement plant of 600 thousand tons capacity . Among oother things, this plant, whose estimated value is 80 million U.S. dollars, will produce 100,000 tonnes of white cement.

Seven investment projects are expected to be implemented in industry under Investment program in 2012. For instance, ceramic tiles   project to produce  one million square meters of tiles annually is underway at "Moderna Keramik Industries JV in Fergana. In addition, soft roofing materials production project is implementing at Uzbek-American joint venture enterprise PentUz in Tashkent region. Annual production volume using latest technology and meeting European quality standards will be five million square meters.

These and other projects implementation will allow to saturate domestic construction market with modern high-quality materials made from local raw materials and to increase exports.

Advantages.

- necessary legal framework contributing to creation of enabling environment for business and providing foreign investors with a package of benefits and privileges;

- political and macroeconomic stability in the country, that guaranties  the investments security;

- opportunity to enter the markets of CIS whose population is over 300 million people, and also the existence of an agreement on free trade zone with Russia, Ukraine, Belarus, Kazakhstan, Georgia, Armenia, Azerbaijan, Moldova, Kyrgyzstan;

- convenient countrys geographic location;

- relatively cheap energy;

- access to the unused buildings and structures under the zero value on the condition of mandatory investment;

- potential domestic market in Uzbekistan with a population of 29.7 million people. 

- raw materials resulting from countrys rich natural resources.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO