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Location:
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Bulakbashi district, Andijan region
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Sector:
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Industrial
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Total cost:
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$ 203.9 mln
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Chinese partner:
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Shangfeng - Bridge of Friendship
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Uzbekstani partner:
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UzPromStroyBank
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Construction start:
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2015
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Putting into commission:
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2019
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Shangfeng - Bridge of Friendship is a joint venture that was created by three Chinese companies - Beijing Triumph International Engineering Co. Ltd, Zhejiang Shangfeng Building Materials Co. Ltd and Tunli - and Uzbeki Juydam Ta’mir Quirilish to proceed with the construction of a cement factory in Uzbekistan. [1]
Beijing Triumph International Engineering Co. Ltd, co-founded by China Triumph International Engineering Co., Ltd., is one of the main cement international engineering companies of China National Building Materials Group, a “World Top 500” enterprise, and the “main force” for China Building Materials Engineering to expand overseas markets.
Zhejiang Shangfeng Building Materials Co. Ltd, a subsidiary of Gansu Shangfeng Cement Co., Ltd., manufactures and distributes cement. It is one of the 50 largest companies in China.
Shangfeng - Bridge of Friendship is building a cement plant in the Bulakbashi district of the Andijan region. The total cost of the project is around USD 420 mln.
The first stage of construction is planned for completion by 2020. In the first stage, the capacity of the plant will be 1.2 million tons of cement per year. The project cost at this stage is USD 203.9 mln. Chinese partners will attract over USD 136 mln worth of FDIs and loans. These funds will be disbursed to purchase materials, equipment, machines and mechanisms, components of process equipment, devices, vehicles, spare parts, tools, software, development of technical and design documentation.
The construction and assembly works will be financed by a loan of UzPromStroyBank - USD 14.9 mln, and setting up of all the necessary external infrastructure, including electric and gas networks, roads and railways, water supply will be funded by JV's own resources and additional attracted foreign investments of 52.7 million dollars. [2]
Alternative types of fuel and energy resources, including coal, will be used in the production, as stated in the agreement.
The raw material for the factory will be provided by the Sultanabad field (clay), the Shirmanbulak III field (limestone) in the Andijan region and the Kamyshbashinskoye I field (gypsum) in the Ferghana region.
The President of Uzbekistan provided the joint venture with a wide range of benefits and preferences, including tax exemption for a period of five years after the start of production and exemption of mandatory contributions to the Republican Road Fund. In addition, until October 1, 2019, the company were exempt from customs payments on imported materials, machinery and equipment, special vehicles, spare parts, components, tools and technological equipment, fuels and lubricants and metal, as well as from the payment of value added tax on services performed by non-residents. [3]
The project will increase the industrial production of the district by 5 times. 750 people will be employed. The final products will supply the domestic market and $ 20 mln worth of materials will be exported abroad annually.
The second stage at a cost of USD 215 mln is planned from 2020 to 2023. the capacity will be increased to 3 million tons of cement per year. [4]
http://xs.uz/uz/post/buloqboshi-tumanida-tsement-zavodi-qurilishi-boshlandi
https://www.uzdaily.uz/en/post/40176
https://www.norma.uz/novoe_v_zakonodatelstve/v_andijanskoy_oblasti_postroyat_cementnyy_zavod#