Tashkent, Uzbekistan (UzDaily.com) -- A new free economic zone (FEZ) Qarakul will be built in Bukhara region. Its basis will be the gas chemical complex (GCC) under construction here on the basis of MTO technology. This was reported by the Ministry of Energy of Uzbekistan.

The start of the construction of an industry cluster, where high-tech related industries will be developed for the production of final products, was given by the resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. PKM-357 adopted on 4 July 2022.

The complex will become the anchor resident of the FEZ Qarakul and the largest plant in the republic for the production of polymer products based on the MTO (Methanol to Olefin) technology, which allows processing natural gas methane.

The enterprise will produce polyethylene terephthalate (PET) and polypropylene (PP), as well as ethylene vinyl acetate (EVA) and low density polyethylene (LDPE), which are new to the Uzbek market.

The complex will produce up to 730,000 tons of polymer products per year and will become the largest polymer producer in the country and one of the few in the world to produce such materials from methane.

“This is an important step in the development of the energy industry of our country, contributing to the creation of the first industry platform in the Republic of Uzbekistan and Central Asia for the implementation of large gas chemical projects. The cluster will contribute to the development of the region and the creation of more than 2,300 new jobs,” said M. Shakirov, Deputy General Director of SEG, MTO project manager.

For residents of the FEZ Qarakul, a number of tax, regulatory and other benefits are provided. In particular, tax preferences for property and water supply for 10 years, the right to duty-free import of equipment and raw materials. Also, excises and income tax will be reduced by 50%, and other preferences will be applied.

Several large enterprises-manufacturers of polymer products in Uzbekistan have already expressed interest in placing facilities on the territory of the FEZ. Among them are the largest carpet manufacturers SAG and UrGaz, pipe manufacturer Vero Group and textile products Mergantex.