To fulfill the project Russian company established branch FE Surkhancementinvest Ltd. Planned capacity of the plant, the construction of which began in September, is 360 thousand tonnes of cement per year with the use of shaft-furnace method. Up to 60% of products is planned to export to neighboring countries of the region.

Cement production technique with the use of shaft-furnace allows significantly reduce production areas and heat consumption, which brings benefits in capital outlays. The project will be funded out of the proceeds of Russian company (direct investments).

It is planned to build two more plants with total capacity of 2.7 million tonnes per year and at the cost of about US$450 million in Surkhandarya region till the end of 2012. In particular, Korean Natural Cement and Uzbek Asia Cement International Ltd. created JV Natural Cement Group to build plant with production capacity of 1.7 million tonnes and at the cost of about 300 million USD. Another South Korean company Dseko Posko plans to build a plant with capacity of 1 million tonnes and at the cost of US$150 million in the region during five years. As it was said above, it is planned to build six new cement plants with total production capacity of 9.5 million tonnes and at the total cost of US$1.415 billion in Uzbekistan during 2008-2012.

Funding will be made out of the proceeds of foreign direct investments, own funds of enterprises and credit resources attracted without government warrantee.

Besides the plant in Surkhandarya region, it is planned to build plants with production capacity of 3 million tonnes in Jizzakh region, 1.5 million tonnes each in Kashkadarya region and Karakalpakistan, and 800 thousand tonnes in Tashkent.

According to the results of 2007 cement production in Uzbekistan compared to 2006 grew by 6.6% (up to 5.95 million tonnes). Export volume was US$77.5 million (1.5 times more).

In the present moment six cement plants with production capacity of 6.5 million tonnes are operating in the republic. The largest plants are OJSC Kyzylkumcment (3.08 million tonnes), OJSC Akhangarancement (1.74 million tonnes) and OJSC Kuvasaycement (920 thousand tonnes). Enterprises of cement production industry took 72% of total commodity volume in construction sector of Uzbekistan, and also 75% of total export volume of construction materials.

During the last several years the government of Uzbekistan managed to sell controlling or blocking stocks of three out of four largest cement plants to foreign investors. In particular, Russian Eurocement Group purchased 75% of OJSC Akhangarancement (Tashkent region) from Uzbek-Swiss JV Betonit and its founder Swiss Zeromax. Kazakh Caspian resources acquired controlling stock of OJSC Kuvasaycement (Fergana region) and OJSC Bekabadcement (Tashkent region). At the same time the government made a decision to keep for itself 64% of stocks of OJSC Kyzylkumcement, the largest cement producer in the republic, for the period of 2006-2008.