MINEX Forum

Tag: Uzmetkombinat

  • Uzbekistan’s Uzmetkombinat Launches First Casting and Rolling Complex, Boosting Steel Production Capacity

    Uzbekistan’s Uzmetkombinat Launches First Casting and Rolling Complex, Boosting Steel Production Capacity

    Uzbekistan has marked a significant milestone in its industrial development with the commissioning of the country’s first casting and rolling complex at the Uzbek Metallurgical Plant (Uzmetkombinat) in Bekabad. President Shavkat Mirziyoyev personally attended the launch ceremony, underscoring the strategic importance of the project for the nation’s mining and metallurgical sector.

    The new facility is designed to produce hot-rolled sheet metal, a product previously not manufactured domestically, and will enable the plant to produce up to 1 million tons of sheet metal annually, valued at approximately 8 trillion soums. This output is expected to fully meet the sheet metal needs of metallurgical enterprises in Tashkent and Samarkand, while creating around 1,200 new high-paying jobs. The launch is part of broader reforms that have attracted about US$2 billion in foreign investment to Uzbekistan’s mining and metallurgical industry over the past decade. During this period, 31 large production capacities have been commissioned, and the number of enterprises has exceeded 150. Annual metal product output has surged from 800,000 tons in 2016 to 3 million tons today, with value rising from 1.5 trillion soums to 23 trillion soums. The industry now produces around 80 new types of products for mechanical engineering, electrical engineering, defense, and energy sectors, diversifying beyond its traditional focus on construction-grade rolled metal. President Mirziyoyev emphasized that economic growth and infrastructure projects will drive demand for metal products up by about 1.5 times. Future plans include increasing the use of domestic raw materials, with iron ore reserves estimated at 1.5 billion tons. The development of the Tebinbulak deposit is expected to boost steel production to 1 million tons per year within three to four years, while processing ore from the Surun-ota deposit will yield 600,000 tons of iron ore raw materials annually. A new US$180 million metallurgical plant is also planned. Additionally, US$30 million will be invested to double steel ball production capacity from 250,000 to 500,000 tons per year. The creation of the Industrial Park of Ecological Technologies of Uzbekistan on site will host six projects worth US$70 million for producing large-diameter pipes, overhead cranes, and filtration equipment, generating another 660 jobs. The complex is expected to introduce energy-efficient technologies and digital solutions, boosting labor productivity and product quality.

  • Standard Chartered Arranges €132.5 Million Loan to Boost Uzbekistan’s Steel Production

    Standard Chartered Arranges €132.5 Million Loan to Boost Uzbekistan’s Steel Production

    Standard Chartered Bank has arranged a €132.5 million financing package for Joint-Stock Company “O’zbekiston Metallurgiya Kombinat” (Uzmetkombinat), Uzbekistan’s largest steel producer, to support the completion of its new Casting and Rolling Complex in Bekabad, southern Uzbekistan.

    The transaction is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is providing insurance coverage to mitigate investment risks. Standard Chartered acted as Global Coordinator, Facility Agent, and Mandated Lead Arranger.

    The proceeds will finance the construction of Uzbekistan’s first facility for producing hot-rolled coils (HRCs) — a major step toward import substitution in the country’s steel industry. The new plant will supply HRCs for pipe manufacturing and construction companies, reducing costs and improving supply chain efficiency for domestic consumers.

    Uzmetkombinat employs over 8,000 people and is one of the largest industrial employers in Bekabad, a town of 100,000 residents. The company accounts for more than one-third of Uzbekistan’s ferrous metal consumption, playing a vital role in national infrastructure and industrial development.

    Desislava Radeva, Executive Director, Development and Agency Finance at Standard Chartered, said the deal demonstrates the bank’s commitment to driving sustainable industrial growth in emerging markets.

    “Steel production is a key strategic industry for Uzbekistan, and the domestic sourcing of HRCs represents a huge leap forward for the country,” she said. “This project is a strong example of Standard Chartered’s expertise in driving prosperity in some of the world’s most dynamic markets.”

    Dr. Khalid Khalafalla, CEO of ICIEC, emphasized that the project will enhance Uzbekistan’s self-sufficiency and supply chain resilience:

    “By providing insurance coverage for this facility, we are enabling Uzbekistan to expand its domestic steel capacity, reduce import dependency, and strengthen its industrial base while creating jobs and uplifting local communities.”

    Bakhodir Abdullaev, CEO of Uzmetkombinat, said the project marks a “new chapter” for the company and the country’s industrial sector.

    “The launch of the first domestic hot-rolled coil production will reinforce local supply chains and inject new momentum into Uzbekistan’s economy,” Abdullaev stated.

    This marks Standard Chartered’s second project with ICIEC in Uzbekistan, following a €160.4 million Islamic financing facility extended to Agrobank to support small and medium-sized enterprise (SME) growth.