NEWS AND EVENTS
September 30, 2014
Local Solutions Produce Global Effect
Real sector of the Uzbek economy has been advancing dynamically. In the first half of 2014 the industrial output exceeded 34.6 trillion soums with 8.1% growth YOY. According to experts, the efforts directed at intensifying the localization in the production of modern competitive finished goods and components out of local feedstock has been one of the main factors on this front. (Currency rates of CB from 30.09.2014 1$= 2367.40 soums)
Current economic realities are increasingly pushing the country towards the development of its own production through localization and import substitution. Dependence on external markets and imported goods amid the global economic uncertainty and geopolitical shocks might come at a reasonable cost for any economy. Therefore, many nations face the challenge to foster an industry that would guarantee national security and independence. Uzbekistan has been moving along this way for more than twenty years. Development of local production facilities and establishment of joint ventures with the world’s leading manufacturers has ensured the production of a diversity of consumer goods and technological equipment.
Meanwhile, progress is a never-ending process. Today, Uzbekistan banks on expanding a cross-sector industrial cooperation, particularly between small businesses and large enterprises, which is vital in terms of creating new jobs and providing employment. The inclusion of 31 new projects in the localization program last month might be a decent example. The initiatives vary and cover a wide range of domestic and foreign markets.
Manufacturing companies are best represented. The JV Andijonkabel projects to increase the annual production of automobile cables with European technologies to 25 thousand kilometers by 2016 with localization level at 85.8%. The Tashkent Radio Engineering Plant Zenith Electronics plans to increase the level of localization of semi-automatic washing machines to 52.6%, and automatic machines up to 39.3%.
Uzbek companies have been actively involved in the process of introduction of energy-efficient technologies and innovations. The JV Mir Solar is going to manufacture 900 solar systems of hot water supply (64% localization) and combined photovoltaic stations KFS with the total capacity of 300 thousand Watts (65% localization) later this year. Another joint venture, Nur Invest Texnologiya, is scheduling to launch the production of modern energy-saving compact fluorescent bulbs and bring the annual capacity to seven million items.
Another interesting initiative is proposed by the company O’zfant: it is expected to establish the manufacture of technical whole color fabric with high waterproof and fireproof impregnation, and its derivatives. The annual capacity is estimated at about 660 thousand square meters of fabric chiefly out of the local feedstock.
(Source: «Uzbekistan Today» newspaper)