The Uzbek- Chinese joint venture Hayat Power Cable Systems (HPC Systems) has put into operation a power cable production plant worth $20.4 million, the joint venture told Trend today.
The company reported that the plant producing the high voltage cable and self-supporting insulated wires with cross-linked polyethylene (XLPE) insulation with a design capacity of 10,000 kilometres per year was built in the Navoi free industrial economic zone.
The project was self-funded using the venture`s co-founders own capital.
It was previously reported that HPC Systems joint venture was created by the Uzbek Uzkabel company, Almalyk Mining-Metallurgical Complex (AMMC) and Chinese Gulf Cable Trading Company. Uzbek partners` equity participation is 25 per cent and the Chinese company 50 per cent.
It is expected that about 60 per cent of the joint venture`s products will be exported.
Uzkabel previously planned to implement the project worth $12.5 million for the production of high-voltage power cables.
The project is planned to be implemented through a loan from the Uzbek Reconstruction and Development Fund and Uzkabel`s own funds.
A decision was made to attract AMMC as a major producer of raw copper materials and foreign investors in the face of a Chinese company in 2011. The capacity of the project was increased and the Navoi free industrial-economic zone was chosen as the construction site.
The Uzkabel joint venture is the largest cable and wire manufacturer in Central Asia.
The plant is capable of producing 3000 dimension-type of cable and wires which are used in energy, geology, rail transport, communications, machinery construction, mining industry and agriculture. The main supplier of raw copper is Almalyk MMC.
The Gulf Cable Trading Company is one of the shareholders of Uzkabel JSC. Late last year, the Chinese company increased its share in Uzkabel JSC to 49.53 per cent. The second largest shareholder is Turkish Inter Kablo VE Bakir Sanayi Ticaret Ltd. which accounts for 34.55 per cent of the shares. The remaining shares belong to the staff and minority shareholders.
Almalyk MMC is the only copper producer in Uzbekistan and one of the largest manufacturers of non-ferrous metals in Central Asia. AMMC accounts for nearly 90 per cent of silver and 20 per cent of gold production in the country. The plant is composed of two mining companies, two processing plants and two metallurgical sites.
Alongside Uzkabel JSC, there are two more enterprises producing cables and wires in Uzbekistan. JSC Andijankabel (Andijan) - a controlling stake of the enterprise is owned by the Russian company Farial JSC (Samara), as well as Uzbek-German JV Deutsche Kabel AG Tashkent (Tashkent).
The Navoi FIEZ was created in December 2008. The term of its operation is 30 years with the possibility of a further extension.
During this period there will be special customs, currency and tax regimes, a simplified procedure for entry, stay and departure, as well as obtaining permits for employment of non-resident citizens of Uzbekistan. Tax exemptions will be applied with a minimum investment of three million euros.
According to Navoi FIEZ, currently some 16 enterprises that produce devices to receive digital TV, ADSL-modems, DSLAM, spare parts for cars, cosmetics, pipes and other products, operate in the zone`s territory.