Uzbek leader holds meeting to discuss development of chemical industry
28/12/2017 22:40
Uzbek leader holds meeting to discuss development of chemical industry
28/12/2017 22:40
Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev chaired the meeting on 28 December to discuss current financial and economic situation of chemical industry enterprises and development of the industry, the press service of the President of Uzbekistan said.
Uzbekistan adopted various measures to develop and improve activities of chemical industry. The Government reorganized the enterprises of chemical industry.
The country adopted a programme for development of commercial industry for 2017-2021. It envisages implementation of 43 investment projects with a total value of US$3.1 billion and to increase industrial production by 2.4 times, their exports - 2.7 times, to increase the share of localized products to 42.5 percent and to master production of 43 new types products, create over 3,200 jobs.
The enterprises of chemical industry have some financial problems, including producers of mineral fertilizers.
A complete lack of attention or a superficial approach to financing of agriculture is reason for appearance of shortcomings in the system of mutual settlements in this sphere, the President said.
The costs associated with mineral fertilizers for agricultural needs are not covered. As a result, chemical enterprises are limited in their ability to pay for consumption of natural gas, electricity, phosphate raw materials, sulfuric acid and other types of goods and services consumed, and their accounts payable.
In this regard, starting from 2018, the supply of mineral fertilizers to consumers is planned to be carried out through exchange trades through the intermediation of the "Single agent" of Uzkimyosanoat.
However, there are shortcomings in reducing the cost of mineral fertilizers and increasing the profitability of the industry. In particular, 67 percent of the cost of nitrogen fertilizers are energy costs. Ferghanaazot, Dekhkanabad Potash Fertilizer Plant, Kokand Superphosphate Plant, Ammophos-Maxam and Maxam-Chirchik companies finish in 2017 with low profitability, and Navoiazot with losses. In such conditions, enterprises are completely limited in the formation of their own working capital and are forced to solve problems by attracting loans at 16-18 percent per annum.
In this connection, Uzkimyosanoat was instructed jointly with the relevant ministries and departments to develop a program of concrete measures to reduce the cost of production of chemical products and increase its competitiveness in 2018-2019.
Another problem that needs attention is the wear of the main process equipment. As a consequence, the technological process is disrupted, due to lack of funds, the equipment remains without current and major repairs.
Uzbek President said there is need to develop a sectoral plan for implementation of current and major repairs.
When considering the issue of providing agriculture on a scientifically based basis with phosphate fertilizers, it was noted that the existing requirement for 639,600 tonnes is provided only by 25 percent. In this regard, by upgrading the existing facilities, it is envisaged to increase production to 177,000 tonnes in 2019, and by building a new phosphate fertilizer production complex in 2021 - up to 550,000 tonnes.
At the meeting, the activities of research and design institutes, centers for professional development and diagnostics were analyzed in a critical spirit.
The development of the chemical industry, the provision of appropriate products of competitiveness in the world market, the fundamental diversification of the sphere directly depend on research, design, engineering, diagnostic centers and, most importantly, on the capacity of personnel.
However, the state of affairs in this direction is still in an unsatisfactory state. In this connection, Uzkimyosanoat JSC was entrusted together with the relevant ministries and departments, as well as the South Korean Research Institute of Chemical Technologies, to organize a single center combining research, engineering, design and diagnostic activities, as well as staff development.
On the issues discussed at the meeting, officials were given appropriate instructions.
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