February 18, 2021

Transformation in the chemical industry

According to the Resolution of the President of the Republic of Uzbekistan No. PP-4992 dated 13.02.2021, global changes in the chemical industry are planned.

In particular, the strategic directions of transformation of the chemical, biochemical, gas and petrochemical industries (hereinafter – “chemical industry“) are defined.

This transformation is aimed at:

  • creating multi-link value chains from raw materials to finished products, based on new capacities for the production of semi-finished products from domestic raw materials;
  • limiting state interference in the relationship between agricultural producers and chemical industry enterprises;
  • drastic reduction of the state’s share in the chemical industry by attracting private capital;
  • introduction of modern software systems for management, accounting, and product labeling;
  • establishing a new system of interaction between science and industry in the organization of innovative processes and the transfer of modern technologies based on advanced foreign experience;
  • improving the system of training, retraining, and advanced training of personnel.

Based on these transformations, it is planned to implement an open partnership program for the creation of technological clusters in the chemical and gas chemical industry, which provides for the involvement of private, including foreign, investors and technological partners in the creation of new production facilities. In view of this, it is provided:

  • placement of the new production projects on the basis of tenders in the territories adjacent to large technological complexes in clusters[1] or in empty territories;
  • creation of production facilities for the production of finished products with high added value based on chemical raw materials and semi-finished products;

Thus, this Resolution approved the following:

[1] The Program includes the following technological clusters: the territories of JSC “Navoiazot”, LLC “Kungrad Soda Plant”, the territories of the Ustyurt and Shurtan gas chemical complexes, the territories of the plant for the production of synthetic liquid fuel, as well as after the completion of the transformation and privatization procedures the territory of JSC “Ferganaazot” and the Ferghana oil refinery.