The construction of a cement plant with the yearly production capacity of 3 million tonnes has been launched in Zafarbad district of Jizzakh region, Rosbalt reported.

The project is a joint initiative of UzQurilishMateriallari (UzBuildMaterials) Company and Russian TKB-Invest. The protocol of intention to set up a joint venture to build the plant was signed in spring of this year.

The total project cost is estimated at US$486.42 million, according to UzQurilishMateriallari. The construction is to be completed by the early 2010. The plant is being erected near the hills with large deposits of sand, limestone and basalt. The plant’s production area, including the open pits, engineering communications, and utility areas exceeds 100 hectares.

According to the unconfirmed data, the project will be financed through the funds and loans borrowed by the Russian company. UzQurilishMateriallari and TKB-Invest have announced a tender for the delivery and assembly of technology to equip the new enterprise.

Uzbekistan currently has six cement plants with the total capacity of 6.5 million tonnes. The volume of production in 2006 totaled 5.582 million tonnes, which exceeds the 2005 results by 10.2%. In general, 12 types of cement are produced in the country, including portland cement, white cement and oil-well cement. Portland cement dominates the market with 99.3% of the aggregate production output. The shares of white and oil-well cement are insignificant.

Cement remains one of the main products of the construction materials industry of Uzbekistan with 72% of the market, and 75% of construction materials exports. About a fifth of all cement produced in the country (up to 1 million tonnes) is exported to the neighbouring countries: 31.3% to Tajikistan, 20.8% to Kazakhstan, 20.3% to Turkmenistan, 17.3% to Afghanistan, 10.2% to Kyrgyzstan. In 2006, cement export volume grew by 18.5% to US$37.9 million.

The Government of Uzbekistan has approved the programme of modernization, technical and technological re-equipment of construction material producing enterprises for 2007-2010. Within the next five years 36 major projects envisaging the installation of modern equipment will be carried out at 14 large enterprises. The programme is financed in part by the enterprises themselves, and in part through FDI and borrowed funds.

The projects in this sector envision the replacement of quarry equipment, modernization of raw and cement mills, installation of new production lines, and repair of existing capacities. As a result, cement product is expected to soar. It will increase 1.5 times compared to 2006 to 8.3 million tonnes.