PRESS OF UZBEKISTAN
June 28, 2016
O’ZELTEHSANOAT JOINT STOCK COMPANY INTENDS TO DISBURSE MORE THAN $1 BILLION OF INVESTMENT BY 2030
That would empower the production of 22 kinds of new products and scale up the industry\'s production volumes by 5.1 times.
Being an integral part of the country\'s industrial infrastructure, the electrical engineering industry has been ranking among the fastest growing sectors of the real economy in recent years. Enabled by the program on further reformation of structural transformation and diversification of the economy, enterprises under O’zeltehsanoat Copmany have ensured a positive dynamics of performance.
In 2005, the production volume was 80 billion soums (currency rates of CB RU from 28.06.2016, 1$= 2943.46 soums), against 1.3 trillion soums in 2015. Today, 27 domestic enterprises produce competitive goods that are exported to Central Asia, the CIS and other countries. In 2015, the company sold products in foreign markets for $167.7 million, with an increase of 72% against 2010.
Russia has turned into the largest importer of Uzbek products. Today, more than 30% of export volumes of electrical industry products in Uzbekistan accounts for Russia. Domestic manufacturers have been exporting to Russia mainly refrigerators, television sets, all sorts of cables and wires, and high-voltage equipment.
The company focuses on promoting household appliances in foreign markets. Representative offices and trading houses abroad have proved to be a good mechanism in this regard. To date, their number has reached 30.
In the first quarter of the current year, enterprises of the industry have exported goods for a total of $25.9 million, which is 54.2% more YOY. At the same time, the volume of industrial output in the system has exceeded 227.3 billion soums with 20 percent growth. The consumer goods produced by O’zeltehsanoat enterprises totaled 73.5 billion soums. In particular, the production of vacuum cleaners has increased by 2.6 times, washing machines – by over 50%. Over a third of all the equipment was exported.
The industry development program envisages disbursement of nearly $1 billion of investments by 2030. It is planned to establish the production of 22 kinds of new products, and increase the production volume by 5.1 times through the modernization of enterprises, which promises to be an effective factor in reducing imports.
In 2016 alone, it is planned to increase the production of air conditioners by 8.6%, gas and electric stoves - by 6.7%, TV sets - by 6.5%, refrigerators - by 4.6%, washing machines - by 3.1%.
Forty projects are under way in the company’s system under the Localization Program. In the first quarter, the volume of their production has exceeded 74.4 billion soums.
The company attaches importance to expansion of involvement of small businesses in filling the domestic market with competitive electrical products. Currently, nearly 76.7% of all enterprises of the system are represented by producers of high-quality household appliances and advanced electrical equipment. Nearly 20 household appliances enterprises have been established in recent years. In 2015, the production volume of small businesses in the O’zeltehsanoat system amounted to 618 billion soums.
Over the past five years, electro-industrial companies have set up production of over 25 types of previously imported equipment. As a result, the industry accounted for 40-45% of the domestic market last year.
(Source: «Uzbekistan Today» newspaper)