Consequent development of ferrous metallurgy

Tashkent, Uzbekistan (UzDaily.com) -- Analysts of “AFS-Research” investment company in their reports considering issues such as investment attractiveness and main factors of Uzbek economy development and impact of the global economic crisis on its condition and prospects. Information used in these reports was received from local and foreign periodicals and Internet, data of State Statistics Committee of Uzbekistan as well as from calculation and analysis of “AFS-Research” analysts.

Metallurgy is one of the largest industries of Uzbekistan. Main activities of Uzbek metallurgy enterprises are production of copper, uranium and gold mining.

Ferrous metallurgy of the republic is represented by the only metallurgy plant in the city of Bekabad, Tashkent region. This enterprise, producing steel and rolled metal, works on the basis of scrap metal. In recent years the plant began to produce consumer goods. The plant was commissioned in 1956. Currently, due to lower shipments of scrap metal the plant doesn’t work at full capacity. “Uzmetkombinat” (Uzbek metallurgy plant) produces more than 95% of steel and 100% of rolled metal in Uzbekistan. Russian enterprise “ASK” (Ekaterinburg) implemented modernization of rolling at “Uzmetkombinat” with the cost of $6 million. Modernization included upgrade of electrical equipment and systems of mill automated control. The project was financed from own funds of “Uzmetkombinat”.

In 2009 the plant implemented several projects to upgrade facilities with the cost of $13 million. Realization of the projects will increase efficiency of electrical equipment and allow to improve the quality of the products. It’s also planned to implement modernization with the cost of $49 million in 2007-2011. Production output increased on 7.6% comparing to 2008. The company increased steel output by 6.2% year-on-year to 716,400 tonnes in 2009. The company supplied 687,100 tonnes of ready rolled metal to customers in 2009, which is up 6.9% year-on-year. Output of rolled ferrous metals made up 687,100 tonnes compared to forecasted 650,000 tonnes in 2009. In particular, the company produced 158,400 tonnes of milled balls. Direction of the plant permanently conducts works on searching for new markets. The plant exports production mainly to Russia, Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, Afghanistan, Iran and others.

“AFS-Research” analysts believe that successful functioning of Uzbek metallurgy is an important factor of economy development because it provides diversification, creates new jobs and increases export potential of the country.