The growing demand for rolled metal in Uzbekistan poses new tasks for the metallurgists of the Uzbek Metallurgical Kombinat (UzMetKombinat). The company plans the modernization of the production for the next five years. The project cost is estimated at US$49 million.

A special Presidential Resolution has approved the Programme of Modernisation, Technical and Technological Re-Equipment of Production at UzMetKombinat for 2007-2011. According to the program, within the next five years nine investment projects will be implemented at the enterprise.

These investments are expected to instigate a breakthrough in the technological development of ferrous metallurgy in Uzbekistan. UzMetKombinat is the only ferrous metal producer in Central Asia working with scrap metal. Production was launched in 1956.

"Modernisation will mainly aim at increasing the volumes of production while reducing energy consumption," Director-General of the UzMetKombinat Alexander Farmonov said. "To achieve this, we need to get rid of the unprofitable and ecologically hazardous technology." That is why a major portion of investments – about US$30 million will be directed into the renewal of the outworn equipment.

In 2007-2008, the Kombinat intends to implement the project on the modernisation of the arc-furnace involving the replacement of the furnace transformer estimated at US$7.4 million. The implementation of the project is expected to increase the furnace’s production capacity by 100,000 tonnes to 650,000 tonnes yearly.

In 2008-2009, US$5 million worth project on the reconstruction of the continuous furnace of the section rolling shop will be carried out. This will reduce the consumption of natural gas and the costs of product manufactured by some US$600,000 yearly. By the end of 2007 the enterprise plans to install new rolling technology on hard-alloy rollers for US$1.6 million, which will reduce the product costs by US4500,000 yearly.

The project on the installation of new technology of processing the cinder dumps of steelmaking worth US$1.5 million will allow the recovery of some 8,000 tonnes of additional scrap metal and improve the ecological situation in the region. Over US$1.3 million will be invested in launching the production of new product – steel wire (diameter ranging from 2 mm to 8mm ) with the capacity of 6,000 tonnes yearly.

It is forecasted that upon the completion of the modernization programme in 2011, production of steel will be increased by 12.7% compared to 2006 to 695,000 tonnes, and production of rolled section – by 12.3% to 492,000 tonnes. At the same time production volumes should rise by 30.5% to 320.7 billion soums, and export – by 50% to US$130 million.

The programme will be financed from the UzMetKombinat’s own reserves.