Investment Project for sanitary ware production with capacity 200 thousand pcs. per year in Republic of Uzbekistan 1. Project Initiator: Joint Stock Company Uzbuildingmaterils - www.uzsm.uz 2. Local market demand: Due to high demand in a high quality sanitary ware, the project assumes to sell 60% of produced goods to the local market. 3. Export market: 40% of goods are expected to export to neighboring counties, and CIS (Russia, Kazakhstan, Tajikistan, Turkmenistan, Afghanistan and others). 4. Demand in raw materials (materials and components), including the ones manufactured in Uzbekistan and imported raw materials: all raw materials required for sanitary ware production, such as kaolin, silica sand, feldspar, dolomite, are available in Uzbekistan, excluding zirconium. 5. Manufacturers of sanitary ware in Uzbekistan and region: there is only enterprise in the Uzbekistan specialized in sanitary ware production is a Stock Company Kulol with production capacity of 25000 pcs. per year. There are no other production facilities in CentralAsian region manufacturing the identical goods that promotes the perspectives for Uzbekistan of its potential sale in the region. Over 150000 psc. of sanitary ware are imported to Uzbekistan annually. The ceramic units were imported for over 2178,3 thousand to Uzbekistan in 2008. The country s annual demand in sanitary ware is not less than 160000 psc. (bowls, lavatory, bidet and others), and it is regularly growing. The cost of sanitary ware on the market depends on quality and design: lavatory pan set 80-400 US dollars, washing stand 60-200 US dollars. 6. The required land area including the land intended for production capacities, engineer infrastructure (m 2 / hectare): 10-15 thousand sq.m. are already available in FIEZ. 7. Required engineering provision: - branch railway construction; - 3,5 thousand cubic meters/year water supply; - 2,7 mln. K.W.H./year power supply; - 1,3 mln. cubic meters/year gas supply; - sewerage (thousand cubic meters/year). 8. Project s costs: 17,6 mln. ; the estimated project costs depend on the chosen equipment. The proposed technological line charges are the following: - sanitary ware production equipment - 7 mln. - construction and installation works - 4 mln. - other costs and works - 6,6 mln. Project financing: direct foreign investment. 9. Terms of Project implementation: 24 months after financing started. 10. New jobs: 63 people including: management-8, engininring-10, and workers 45. 11. Annual production: 200 thousand units per year (6,22 mln. ). - for local market - 120 thousand units (3,7 mln. ); - for export - 80 thousand units (2,48 mln. ).
12. Annual volume of earnings for project implementation is 5.6 mln. US dollars. 11. The condition of development and appraisal of project construction documents. Construction documents will be developed after the approval of equipment supplier and feasibility study development. 13. Raw materials located in Uzbekistan are applied for sanitary ware production (kaolin of Angren deposit, silica sand of Djeyron deposit, feldspar of Lyangar deposit), except zirconium. 13.1. Angren kaolin-coal open-pit-mine is located in middle part of Angren valley in 80 km to the southeast from kaolin-coal open-pit-mine Tashkent City and connected with Tashkent with Angren railway branch. Kaolin investigated resources are located in the territory of operated coal pit and could be withdrawn together with coal. Aparkat kaolin-coal open-pit-mine is located in 5 km to the west from operating coal open pitmine and in 3,7 km to the north from Angren Station. According to the detailed data, kaolin clay resources are 390 mln. ton. Kaolin clay annual production: 0,3-0,5 mln. ton. The specific weight of clay: 1,9 2 t/m3. The main raw material for facing ceramic tiles production are kaolin derived clays which represent mottled kaolin clay, that is fat with rare quartz seeds. Derived kaolin consists of large amount of fine-dispersed quartz undersized through sieve of 10000 holes/cm 2 while enrichment process. Grain-size composition of derived kaolin: fraction 2-0,05 mm (sand) - 26-38,4% 0,5-0,005 mm (dust) 16,8-44,9% and less than 0,005 mm (clay) 38,6-81,9% 13.2. The Angren derived kaolin is a raw material with fireproof (refractoriness is 1580-1620 C), low dispersive, semi acid, moderate or average plastic, kaolinite clay, and low-grade of gross-grained inclusions in form of quartz, rock debris, low-sensitive to drying. 13.3. Feldspar concentrate of Lyangar deposit is the product of enriched and crashed granites and gabbro. The amount of oxide alkaline metals is 7.8 8.5%. 13.4. Silica sand Djeroy silica sand deposit is located in Tamdin district, Navoi region, 14 km southward of Tamdimbulak administration centre, 60 km to the northeast from Zarafshan connected by main highways. The nearest railroad station is Yangi Zarafshan. Silica sands of Djeroy deposit comply with local standards and are free-milling. It is not developed nowadays. 14. Brief description of production technology: mass preparation, glaze preparation, molding, drying, glazing, burning. 2
unofficial translation Investment offer 1. Project title: Construction of a new cement plant with production capacity 2 mln. ton per year in Zafarabad District of Djizzak Region. 2. Project initiator is not confirmed. 3. An industrial area for construction of the cement plant was chosen near Chimlurgan village in Zafarabad District (near former battery farm), Djizzak Region. 4. Project information: Marketing: New production plan: Product title Unit Quantity Share in general production 1 Portland Cement, grade 500 DO thousand 330 16,5% 2 Portland Cement, grade 400 D20 thousand 900 45% 3 Portland Cement, grade 400 DO thousand 170 8,5% 4 Portland Oil-well Cement thousand 60 3,0% 5 Portland Cement for airport and pavement thousand 170 8,5% 6 Sulfate Resistant Portland Cement, grade 4thousand 200 10% 7 Sulfate Resistant Portland Cement, grade 5thousand 170 8,5% 8 Total: thousand 2000 100% The analysis of marketing researches for production has shown the following results: development of cement production has a huge importance for Uzbekistan s economy and can serve as the catalyst of the further transformations in building and other sectors of the country 3
demand for a good quality cement exceeds the offer on internal and external markets, in this case the production of new factory will be in demand; capacity of the cement market the nearby countries will ensure export sales enterprise s pricing policy is based on the real cement market prices and offers and is most competitive, that will allow production effectively analysis of the possible competitors shows that on the market of republic at duly realization of the given Project, there will be no competitors capable to affect on enterprise s activity Production: Raw materials supply: There are limestone deposits in Kutarmin (about 132,0 mln. ), Bazaigirsk and Balyklitausks (exploring has not been done, deposits are not confirmed) areas in 1,5-2,5 km from expected construction site. A cast out mountain breeds in Arvaten deposits (15 km) and Osmansay (20 km, exploring has not been done, deposits are not confirmed) will be used a siliceous component. For increasing SiO2 components - quartz arkose s or sandstone, which are in 20 km from production site - volume of stocks is unlimited. As the mineral additives will be used: gypsum in Temerazev deposits (23 km) with 1,55 mln. reserves and burned clay in Angren deposits (420 km) reserves A+B+C1 category make 4,03 mln.. Ferrous rocks in "Duniyo - Tepa" deposit are 0,28 mln.. It is planned to use a dry way cement manufacturing technology with capacity of 2,0 mln. tpy. Quantity of the necessary personnel including engineers and workers is 466 people. 4.3. Construction, reconstruction, or modernization: Investments focus new construction capacities. Plant s requirements to infrastructure: Highways Railways Power supply 0,5-1,0 km from the existing highway Djizzak-Fatish 0,5-1,0 km from the railway Pakhtakor-Uchkulach It is necessary to build a high voltage line 220 kv (140км) from 220 kv substation in Djizzak (or 220kV substation in Sary-Bazar) up to Project s technological substation of 220 kv. 4
Water Supply Sewerage Fuel 10 km up to water pipe line, water pipeline pressure is 2 kg/sm2. It is also possible to use underground water sources. Water mineralization -0,6-1,0 g/l., water hardness - 5,5-7,0 milimolle/dm3, ph- 7,8-8,0, sulfate- magnesium, hydro carbonate - calcium. It is necessary to build a bio purification system Key fuel coal from Baysun and Shargun deposits. Annual consumption - 495,0 thousand. Heating value - 5250-5410 k/kg 4.4. Financing: Project cost (including construction works) is about 250,0 mln.. Project starts operating 2013. Proposed Project s financing: direct foreign investments. 5. Expected results from the implementation of the Project: Expected annual earnings 137,84 ml. and net profit 45,68 mln.. Export volume - 56,9%. 6. Current Project documentation and its expertise. A preliminary feasibility study and tasks conformation was made. The Governor of Djizzak Region has confirmed the area for construction of the Cement Plant. The land size was stipulated for detailed exploration works. Passport of the Investment offer Construction of new cement plant in Zafarabad area in Djizzak Region with production capacity of 2,0 mln. ton per year N Scope of works Unit Project Parameters 1. Total Project Costs, particularly: thousand 250 000,0 1.1. in national currency mln. UzSom 1.2. in foreign currency thousand 250 000,0 2. Costs in foreign currency, total mln. 250 000,0 2.1. Particularly, for equipment procurement thousand 2.2. For construction and erection works thousand 3. Costs in national currency, total mln. UzSom - 3.1. particularly, for equipment procurement mln. UzSom - Notes 5
3.2. for construction and erection mln. UzSom - works 4. Financing sources: 4.1. Budget funds mln. UzSom - 4.2. Foreign Credits, total thousand - - Particularly for Government thousand - Guarantee 4.3. Foreign Direct Investments, total thousand 250 000,0 - Particularly in Authorized Capital thousand - 4.4. Own funds mln. UzSom - 4.5. Commercial banks credits mln. UzSom - 4.6. Other sources(pls. indicate) mln. UzSom - 5. Proposed amount of employed people 466 staff 5.1. Particularly newly created jobs people 466 6. Construction period, total months 36 6.1. Approximate dates of construction month, year 2010 works commencements 6.2. Approximate dates of start month, year 2013 production 7. Payback period, total years 7 8. Annual cement production mln.tn./year 2,0 8.1. Particularly for export mln.tn/year 1,138 9. Annual sales profit mln. UzSoms 209 655,0 - Particularly for export thousand 78 341,0 10. Expected sales markets: Afghanistan, Kazakhstan, Turkmenist an 10.1. Share of local market % 43,1 10.2. Share of external market % 56,9 6
Investment Project for production of flat glass with capacity of 600 ton glass mass per a day in Republic of Uzbekistan 15. Project Initiator: Joint Stock Company Uzbuildingmaterils - www.uzsm.uz 16. Local market demand: Due to high demand on glass and glass ware in Uzbekistan, the project assumes to sell 60% of total production to local market. 17. Glass export: 40% of goods are expected to export to neighboring countries (Kazakhstan, Tajikistan, Turkmenistan, Afghanistan, and others). 18. Glass manufacturers in Uzbekistan and Central Asian Region: Uzbek glass plants have produced 5,7 mln.sq.m. of glass in 2008, including 5 mln.sq.m by Stock Company Kvarz, and 0,7 mln.sq.m. - Joint Venture Gazalkentoyna. A total flat glass market capacity in Uzbekistan in 2008 was approximately 10 mln.sq.m., including imported 2.3 mln.sq.m. Construction sector is the main consumer of flat glass in Uzbekistan. It has more than 80% of output in its share. There are 3 glassworks in Central Asian region: Producers Production Capacity, mln. sq.m. per year (4 mm) Stock Company Kvarz (Uzbekistan) 5,0 Joint Venture Gazalkentoyna (Uzbekistan) 1,62 Tokmak Glass Plant (Kyrgyzstan) 9,3 19. A required land area, including the land for production capacities, engineer infrastructure (m 2 / hectare): the land for glass plant area is chosen in Free Industrial Economic Zone in Navoi Region. The required land for industrial area is 90 000 sq.m. (9 hectare, including 3 hectare for industrial premises). Open cast mile of silica sand production and enhancement makes 54 hectares. 20. Required engineering provision: - railway branch; - 62 thousand cubic meters/year of water supply; - 31500.0 thousand K.W.H./year of power supply; - 30000.0 thousand cubic meters/year of gas supply with atmosphere pressure; - sewerage (thousand cubic meters/year). 21. Project s costs: 85 mln.. The estimated project costs depend on the chosen equipment. The proposed technological line costs are the following: - flat glass production equipment - 40 mln. - silica sand enrichment equipment 11,8 mln. - construction and installation works 19,2 mln. - other additional works and costs - 14 mln.. 22. Sources of Project financing: direct foreign investments. 23. Terms of Project implementation: 30 months after financing started. 24. New jobs: 600, including: managers / administration - 60, engineers / technical staff - 40, and workers 500. 7
25. Annual make quantity: 100 thousand ton (50000 thousand ) - for local market - 57,5 thousand ton (27500 thousand ) - for export 37,5 thousand ton (20000 thousand ) - for own consumption - 5 thousand ton (2500 thousand ) 26. Annual Project proceeds: 47.500 thousand. 27. The condition of development and appraisal of project construction documents. Construction documents will be developed after the approval of equipment supplier and FS. 28. Demand in raw materials (materials and components), including the ones manufactured in Uzbekistan and imported raw material resources: There are all raw materials required for flat glass production are available in Uzbekistan excluding salt cake. 14.1. Silica sand: Due to the fact that new glass plant will be located in Navoi Region, it is favorable to develop own open cast mine with concentrating area on Djeroy Deposit of silica sand. Djeroy Deposit of silica sand is located in Tamdin district, Navoi region, 14 km southward of Tamdimbulak administration centre, 60 km to the northeast from Zarafshan town connected with main highways. The nearest railroad station is Yangi Zarafshan. Djeroy Deposit of silica sands comply with the standards and are free-milling. It is not developed now. 14.2. Soda ash: Kungrad Soda Plant has a production capacity 100 thousand ton/year. 14.3. Salt cake: Salt cake is imported from Turkmenistan. Nowadays the issue related to own salt cake production in the Uzbekistan is discussed with Joint Stock Company Uzkhimprom. 14.4. Dolomite: the major and the largest dolomite deposit in the republic is Dekhkanabad open cast mine with 2624 thousand. 14.5. Limestone: it is expected to get the limestone for a new glass plant from Urgaz Deposit (Tashkent Region) with 94.6 mln. of approved resources. 14.6. Cullet: Cullet is used from own production divergence, and could be purchased in local market as well. The quality of the above mentioned raw materials complies with all local standards requirements. 29. Glass production method includes the following stages: - raw materials storage - raw material preparation - burden preparation - glass melting - formation - sheet glass annealing - glass quality control - glass cutting, transporting and nesting pattern - powder laying - flat glass packing - finished production storage 8
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