16.07.2020

On July 16, President Shavkat Mirziyoyev got acquainted with new projects in the petrochemical, electrical engineering and pharmaceutical industries via videoconferencing, received reports on the state of development of these industries.

Currently, with the pandemic having a grave impact on the world economy, Uzbekistan has been undertaking efforts to secure the sustainable development of economic industries. Deep processing and monetization of raw materials is well underway. Measures are being taken to boost economic efficiency through the production of import-substituting and export-oriented finished goods.

At the meeting today, executives provided information on new projects in the petrochemical industry.

On December 28 last year, a complex for the production of polyvinyl chloride, caustic soda and methanol was put into operation at the Navoiazot Joint Stock Company. The second stage of the plant is currently being designed. It is expected to cost about $ 440 million. It is planned to employ 650 people and produce $ 132 million worth of goods a year. The introduction of modern technologies will save considerable volumes of natural gas.

The next $ 25 million project envisages the production of hydrogen peroxide. With cleansing and disinfecting properties, this substance is widely used in pharmaceuticals, textiles, medicine and everyday life. The project will help create 50 jobs and produce goods worth nearly $ 20 million a year. The mill is intended to be launched in September 2021 in the Navoi region.

As a result of the implementation of the project for the production of urea-formaldehyde concentrate (the design cost exceeds $ 18 million) at the Navoiazot, the production of import-substituting goods for $ 9 million and exports for $ 1 million per year will be established and 50 jobs are expected to be created. Construction of the factory began last March, while commissioning is scheduled for next March.

The $ 12 million carboxymethyl cellulose reagent project is critical for construction, drilling, food processing and medicine. In March this year, the first stage of the scheme was launched in the Yukori Chirchik district. After completion of all four stages by 2023, import-substituting goods for $ 9 million and export-oriented ones for $ 13 million will be produced. 100 jobs will be created.

A $ 5 million project is being implemented to generate expanded polypropylene, which is used in the production of heat-insulating food containers, protective helmets, car seats, toys and other goods. As a result, 40 jobs will be created and the production of 8 new types of goods will be mastered. The enterprise is due to be commissioned in August 2021 in the Yashnabad district of Tashkent.

The head of state reviewed the presented projects and gave instructions on accelerating and ensuring high quality of their implementation.

The officials were urged to consistently continue work in these industries, to organize the production of goods such as synthetic fibers, polyester resins, polymers, aromatic hydrocarbons in demand in the construction industry, the automotive and pharmaceutical sectors.

The meeting participants also discussed the activities of Uzbekneftegaz Joint Stock Company in the first half of the year.

All conditions have been created for uninterrupted operation during the lockdown period of all enterprises included in the system of Uzbekneftegaz. As a result, the fulfillment of forecasts for half a year was ensured, an additional 1 billion cubic meters of natural gas, almost 22 thousand tons of condensate and 1.2 thousand tons of oil were produced. Within the framework of 11 projects, investments for $ 846.5 million were disbursed.

The President gave instructions on improving the quality of manufactured products, the level of localization, reducing imports and actively introducing digital technologies into the industry.

The importance of attracting foreign investors to promising projects to expand geological exploration and increase hydrocarbon production was emphasized.

During the meeting, the state of development of the pharmaceutical and electrical engineering industries, the progress of the realization of priority investment projects aimed at organizing the production of high-quality goods with high added value and expanding the export potential of these industries were also considered.

At present, Uzbekistan’s electrotechnical sector is represented by 429 enterprises that produce more than 70 types of goods. At the end of last year, the electrical industry manufactured products worth $ 897.5 million, exported for $ 250.3 million.

There are 202 enterprises operating in the pharmaceutical industry of Uzbekistan. At the end of 2019, the volume of pharmaceutical production in the nation amounted to $ 170 million, exports to $ 22.1 million.

These two industries employ over 52 thousand people.

Most of the pharmaceutical companies are confined to the production of drugs with simple formulae. Therefore, the share of imported goods in the domestic consumption of pharmaceuticals is 79 percent. These figures are indicative of the availability of immense untapped potential.

Currently, the pharmaceutical industry has been spearheading 93 investment projects with a total value of $ 630 million, of which $ 355 million is the share of foreign investments. The execution of these projects is anticipated to provide for the creation of 5.5 thousand jobs.

At the meeting, heads of relevant industries, ministries and agencies presented their reports. Afterwards, the President set specific tasks to promote the development of pharmaceutical and electrical industries, bolster their input into the national economy and ensure their sustainable operation amid the coronavirus pandemic.

Shavkat Mirziyoyev also voiced instructions on how to extensively attract foreign investments for boosting the scientific pillar, stimulate the organization of new industries, including through the creation of additional free economic zones and areas of advanced development. The recommendations also covered enhancing cooperation ties among enterprises, reducing production costs and ensuring competitiveness of goods, swelling exports, consolidating human resources in electrical engineering and pharmaceuticals.

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