Uzbekistan to launch production of 100 homecare brands

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan will develop a programme to launch the production of at least 100 new brands of household chemicals, it was announced on 2 June at a meeting on the development of the chemical industry chaired by President Shavkat Mirziyoyev.

According to the data presented, annual imports of household chemicals into the country amount to around US$300 million, while the regional market is estimated at US$2 billion. Authorities stressed the need to increase domestic production and expand local manufacturing.

A successful project in the “Angren” special economic zone was cited as an example, where an entrepreneur established cooperation with the international company Henkel. It was noted that Henkel later acquired the enterprise and plans to use its facility to supply products to CIS countries.

Under the new initiatives, production sites will be allocated in one of the industrial zones of Tashkent for the implementation of household chemical projects. It is also planned to allocate US$50 million for projects that will later be sold to the private sector as ready-made businesses with established brands.

An additional US$15 million will be directed to similar regional initiatives from the Industrial Cooperation Fund. Overall, officials have been instructed to develop a programme for launching at least 100 branded products in the household chemicals sector.

The meeting also reviewed prospects for the development of mineral fertiliser production. Global demand for such products is growing by about 5% annually and could exceed US$260 billion by 2030. Strong growth is recorded in the segment of water-soluble fertilisers.

It was reported that agreements have been reached with investors on projects in Kashkadarya region worth US$114 million with an annual capacity of 230,000 tonnes, as well as a US$400 million project in Syrdarya region.

Overall, over the next three years, Uzbekistan plans to implement 42 projects in the chemical industry worth US$2.8 billion. This is expected to increase production of nitrogen fertilisers from 2.8 million to 4 million tonnes, phosphorus fertilisers from 400,000 to 900,000 tonnes, and water-soluble fertilisers from 100,000 to 400,000 tonnes.

Earlier reports noted that domestic demand for chemical products in Uzbekistan is met at less than 60%, while annual imports in this sector reach US$4.5 billion.