American-Uzbekistan Chamber of Commerce
Week in Review:
January 2, 2015 - January 9, 2015
OIly MajlisNBUImage 2
AUCC 20th logo


Dear AUCC Members and Friends:


Happy Holidays and best wishes for a prosperous New Year! 


We would like to express our gratitude to all AUCC members who, through all these years, have proven to be Uzbekistan's true allies and have been nothing but dedicated, reliable, honest and most conscientious business partners inspired to expand the bilateral relationship, business climate and promote development to enhance the lives of the people of Uzbekistan and the US.  


Our companies recognize that despite the global economic slowdown, Uzbekistan has managed to secure successfully greater macroeconomic stability and growth.  We applaud the Government of Uzbekistan for their continuous process to improve the operating business environment that US companies benefit from and fiscal discipline that has enhanced economic growth.  We greatly appreciate our own US Government for their continuous dialogue with their Uzbek counterparts on how to use trade and investment engagement as a pillar of the bilateral relations.


We stand ready to use our business acumen to facilitate the Uzbek and US Governments' efforts to attract more American companies and helping those who are already here generate even more success stories for the world to hear. We hope for the US and Uzbek Governments' support in helping us multiply our achievements and generate more projects and contracts that will make our nations achieve greater prosperity, stability and higher rates of development. 


Happy Holidays!  May 2015 bring greater prosperity to the American and Uzbek people. 




Carolyn Lamm, AUCC Chairperson

Timothy McGraw, AUCC President


If your company is interested in joining AUCC, please contact our office at 202-509-3744 or  We invite you to be part of our organization and participate in our activities and events.   


Our Members:
Indsur Stelcor, Inc.
Lockheed Martin small
Rio Tinto
Solar Logo
SSI logo
White & Case
Join Our Mailing List
Quick Links:
In This Issue:
Chinese companies interested in Uzbekistan's Jzzakh special industrial zone
Uzbekistan to allocate $66 M for chemical complex construction
Uzbekistan President approves Uzbek-Chinese chemical project
Kazakhstan & Uzbekistan Petrochemicals Report 2015

Established in 1993, the American-Uzbekistan Chamber of Commerce (AUCC) is a private, non-profit trade association representing interests of U.S. businesses ranging in size from small private enterprises to large, multinational corporations conducting business in Uzbekistan.

Our Mission: To advocate the views of the business community to ensure that private sector positions are considered during the development of key policies that impact American businesses and the future of U.S.-Uzbekistan relations.

Our Objective: To serve the needs of its members by strengthening commercial relations between the United States and Uzbekistan.

The Times of Central Asia

January 5, 2015 


Uzbekistan's investment opportunities for Chinese companies with particular emphasis on the Jizzakh special industrial zone (SIZ) were recently presented at the Chinese-Uzbek business forum in Nanjing, the administrative center of China's Jiangsu province, the Jahon information agency reported.  

Vice Governor of Jiangsu Province, Fu Tsziin, said at the forum that the presentation of the potential of Jizzakh SIZ in Nanjing will allow China business circles to become better acquainted with privileges and preferences the SIZ offers to foreign investors. In his words, the forum was a signal to further enhance long-term cooperation with Uzbekistan.

The Deputy Secretary General of the Government of Jiangsu, Fan Wei, visited Uzbekistan last September. "During a visit to SIZ Jizzakh the Chinese delegation was convinced of the presence in the territory of all the necessary conditions for successful business," he said. "The Uzbek leadership is paying special attention to the development of transport, industrial and engineering infrastructure of the special industrial zone. Construction and reconstruction of the road and rail infrastructure, upgrade of the water supply systems, irrigation and drainage, electricity and gas networks is being carried out."

The Vice President of China's Jinsheng company, Jin Hao, highlighted the political and macroeconomic stability in Uzbekistan, its advantageous geographical location in the center of the largest regional markets with developed transportation and logistics infrastructure, as well as the presence of three free economic zones in Angren, Navoi, and Jizzakh, as the main factors contributing to the consistent increase in foreign investments in the economy of Uzbekistan.

According to Jin Hao, the company Jinsheng is currently starting a production facility for processing cotton into finished textiles in Uzbekistan.



January 5, 2015 


The Uzbek Fund for Reconstruction and Development (UFRD) will allocate $65.97 million for the construction of a chemical complex for the production of polyvinyl chloride (PVC), caustic soda and methanol on the basis of Navoiazot JSC worth $501.1 million, according to the decree of the head of state.

The loan of the UFRD will be presented to Navoiazot JSC of the Uzhimprom State Joint-Stock Company (SJC) as a 15 percent advance payment on a contract with the China CAMC Engineering Co., Ltd., according to the document.

Uzhimprom State Joint-Stock Company (SJC) and China CAMC Engineering Co. Ltd. signed a contract for the construction of a chemical complex for the production of polyvinyl chloride (PVC), caustic soda and methanol on the basis of Navoiazot JSC in Uzbekistan worth $439.8 million in August 2014.

The contract was signed for the construction of the technological part on a "turnkey". Implementation period of the contract is three years.

UFRD credit will be allocated for a period of ten years, with a three-year grace period at an interest rate of 2.25 percent per annum.

The resolution said that in addition to UFRD credit, work under the contract will be financed by concessional long-term foreign loans in the amount of $373.83 million.

Design capacity of 100,000 metric tons of PVC, 75,000 metric tons of caustic soda and 300,000 metric tons of methanol per year on the basis of Navoiazot.

It was earlier reported that Uzbekistan planned to implement the project since 2006.

In March 2006 the Russian Caustic JSC (Volgograd) and Navoiazot created a Navoi-layer joint venture for the implementation of the project of initial cost of $165.5 million. Subsequently, however, the Russian company refused to participate in the project on the existing technical and financial conditions.

In mid-2009 Navoiazot and Korean ISU Engineering established a joint venture ISU Navoi Chemical for the project of PVC and caustic soda production $180 million worth, but the project was halted due to revision of previously prepared OTEC project.

In 2014 Uzhimprom could not sign a contract with the China National Chemical Engineering Company (CNCEC) which won the tender for the construction of chemical complex announced in May 2013. The reasons why the contract was not signed are not commented.

Navoiazot JSC (former Navoi chemical plant), the largest chemical company in Uzbekistan, was commissioned in 1964. The factory specializes in the production of nitrogen fertilizers, nitronic fiber as well as in integrated production of organic synthesis.

The Uzbek Fund for Reconstruction and Development (UFRD) was established in 2006 for financing and co-financing the projects included in the state investment program.

The founder of the fund is the government represented by the finance ministry. Currently, the fund's authorized capital is formed in the amount of $ 15 billion.

The means of fund are formed by extra forecasted receipts of taxes on excess profit, soil usage and excise in the budget as well as income from sale of products under the PSA with foreign partners.

In 2015, UFRD will allocate $908.1 million for the implementation of 34 projects.


Times of Central Asia

January 7, 2015 


President of Uzbekistan Islam Karimov has signed a decree on measures to implement the investment project for construction of a polyvinyl chloride (PVC), caustic soda and methanol production complex on the basis of Navoiazot company with China's participation, the Jahon information agency reported.

The decree approves a preliminary feasibility study of the investment project. Uzbekistan's chemical companies JSC Navoiazot and Uzkimyosanoat earlier signed a contract with China's CAMC Engineering Co. on the construction of a complex for the production of 100 thousand tons of PVC, 75,000 tons of caustic soda, and 300,000 tons of methanol per year on a turnkey basis. The total cost of the project is US $439.8 million.

The Fund for Reconstruction and Development of Uzbekistan will provide a loan of $65.97 million for the project. The funds will be provided to JSC Navoiazot from Uzkimyosanoat for advance payment of 15 percent of the cost of the contract with the Chinese company.

To finance the project it is also planned to attract favorable long-term foreign loans in the amount of $373.83 million.

Uzkimyosanoat will act as the executive body responsible for the proper and effective use of the loan and credit facilities and timely implementation of the project.

The President's decree also provides for customs and tax benefits for the participants of the project.



January 7, 2015


Russia's economic problems stemming from its trade war with the West are having a negative impact on the Central Asian petrochemicals market with Kazakhstan's imports dropping sharply in 2014. BMI's latest Kazakhstan and Uzbekistan Petrochemicals Report anticipates further falls in imports as both states prepare for a surge in capacity in 2016.

Both Kazakhstan and Uzbekistan will have sufficient production to cover domestic needs with a surplus likely to stimulate polymers conversion and boost exports. The Central Asian market is robust and growing fast, providing a sound basis for new petrochemicals capacities.

Most consumption will be focused on finished products with a lack of domestic plastics converters to fulfil demand. This could change as domestic petrochemicals capacities evolve, enabling local sourcing of cheap raw material for the manufacturing of end products.

Full Report Details at:


* The ongoing USD6bn modernisation of Kazakhstan's refining sector, combined with the construction of several smaller scale refineries, is expected to increase Kazakhstan's refining capacity by 14.7% to 2023.

* In 2016, Kazakhstan is set to complete construction of a major petrochemicals complex in the Atyrau region that is designed to produce 1mn tpa of ethylene, 500,000tpa propylene, 500,000tpa polypropylene (PP) 400,000tpa of low density polyethylene (LDPE) 400,000tpa of linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE).

* Uzbekistan should also begin operations in 2016 at an ethane cracker with capacity to produce 400,000tpa of ethylene as well as downstream units with capacity for 400,000tpa HDPE and 100,000tpa PP.

* In 2014, Central Asia's petrochemicals capacities include 240,000 tonnes per annum (tpa) ethylene, 125,000tpa polyethylene (PE) and 120,000tpa polypropylene (PP). These capacities are set to surge over the next five years as a result of planned developments in Uzbekistan and Kazakhstan. By 2019, Central Asia will have olefins capacities of 1.64mn tpa.

The Kazakhstan & Uzbekistan Petrochemicals Report has been researched at source, and features Business Monitor International (BMI)'s market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.

BMI's Kazakhstan & Uzbekistan Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Kazakhstani, Uzbekistani petrochemicals industry.


About Fast Market Research


Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.


The American-Uzbekistan
Chamber of Commerce
1300 I Street, N.W.,
Suite 720W
Washington, DC 20005
phone: 202.509.3744