Tasks for the accelerated development of the chemical industry have been identified

On June 2, a videoconference meeting chaired by President Shavkat Mirziyoyev was held on the accelerated development of the chemical industry and the implementation of investment projects in the regions, the press service of the head of our state reports.

It was noted that the country’s economy is developing dynamically, with industrial sectors launching the production of 3,000 new products in recent years.

Just 9-10 years ago, the country’s chemical industry was primarily represented by the production of mineral fertilizers. In recent years, the industry has attracted $8.3 billion in investment, and 87 large production facilities have been commissioned.

The production of more than 60 new high-value-added products has been launched, including PVC, green hydrogen, expanded polypropylene, and BOPP film. This has created the necessary raw material base for the production of thousands of new products in various sectors of the economy.

As a result, the industry’s exports have tripled, and the workforce has exceeded 50,000.

At the same time, it was noted that significant untapped potential remains in the industry. Over the past nine years, the republic’s industry has grown by an average of 6.3 percent, while the chemical industry has not even grown by 3 percent. Chemical imports have quadrupled, reaching $4.5 billion annually.

It was noted that Uzkimyosanoat Joint-Stock Company is focused on the large enterprises within its structure, and that systematic work with the more than 5,000 companies in the industry is virtually nonexistent. Their problems and proposals are not being addressed.

The meeting focused on changing the production structure, increasing added value, and reducing energy costs.

The country produces 1.5 million tons of ammonium nitrate annually, consuming 1.07 billion cubic meters of gas. At the same time, advanced countries are reducing their consumption of ammonium nitrate, switching to urea and water-soluble fertilizers in agriculture and to porous ammonium nitrate in mining.

It was noted that the production of porous nitrate, which has the same cost as ammonium nitrate, doubles the added value. It was emphasized that decision makers and managers of chemical plants should seriously consider expanding such projects.

It was also noted that the production of glue from cyanide salts, produced at Navoiazot at $3,700 per ton, could increase the cost to $8,000. Responsible officials were instructed to begin implementing 10 small-scale chemical projects worth a total of $1 billion in the cluster near Navoiazot.

It was emphasized that added value can also be increased significantly by fully exploiting existing geological reserves.

Karakalpakstan, Surkhandarya, Kashkadarya, and Navoi regions have 550 million tons of sodium and potassium reserves, as well as 20 million tons of bentonite. With advanced processing of this raw material and the production of caustic soda, added value can increase threefold.

Identified serpentinite reserves in the Jizzakh region and Karakalpakstan amount to 1.5 million and 500,000 tons, respectively. When processed with sulfuric acid, magnesium oxide can be produced, valued at up to $5,000 per ton. Further advanced processing of serpentinite will create opportunities for the production of nickel, chromium, and cobalt, which are important raw materials for the electrical industry.

Responsible officials have been instructed to develop and begin implementing a three-year program to double the reserves of raw materials needed for the chemical industry, including phosphorite, halite, mirabilite, and serpentinite. In the serpentinite processing sector, the target has been set to launch projects worth at least $200 million.

The country imports household chemicals worth $300 million annually. The market for these products in the region is estimated at $2 billion.

For example, an entrepreneur in the Angren Free Economic Zone established a partnership with the renowned global company Henkel. The company has now been acquired by Henkel. Plans are underway to export local products to CIS countries.

To expand such projects, space will be allocated in one of the capital’s industrial zones for household chemicals initiatives. $50 million will be allocated for this purpose, with the condition that the commissioned facilities, along with the brand, will be sold to the private sector as a ready-made, profitable business.

For similar projects in other regions, $15 million will be allocated from the Industrial Cooperation Fund. Overall, those responsible have been instructed to develop a program to launch at least 100 new branded products in the household chemicals sector.

The meeting also analyzed the potential of the mineral fertilizer market.

Global demand for mineral fertilizers is growing by 5 percent annually and is expected to exceed $260 billion by 2030. With the introduction of new agricultural technologies, demand for water-soluble fertilizers is growing particularly rapidly.

Responsible officials and khokims have been tasked with implementing 42 projects worth a total of $2.8 billion over the next three years. By 2030, it is planned to increase the production of nitrogen fertilizers from 2.8 million tons to 4 million tons, phosphorus fertilizers from 400,000 tons to 900,000 tons, and water-soluble fertilizers from 100,000 tons to 400,000 tons.

It is noted that the implementation of major projects in water-soluble fertilizers, polymers, household and inorganic chemicals will lead to increased demand for specialists in modern fields such as nanochemistry, green chemistry, supramolecular chemistry, and artificial intelligence-based chemical modeling.

In this regard, a decision was made to create a comprehensive system in the chemical industry encompassing education, scientific research, laboratories, and startups.

To this end, an innovative scientific, production, and educational cluster for the chemical industry will be established on a 60-hectare site in the Mirzo-Ulugbek district. A Chemical Technology Innovation Center will be built within this cluster jointly with South Korea. The center will reimburse half of the costs associated with pilot projects.

Overall, instructions were given to develop and begin the practical implementation of a program to launch more than 350 projects in the chemical industry worth $17 billion.

The head of state emphasized that achieving these ambitious goals requires managing the industry based on scientifically sound and modern approaches. In this regard, responsible officials were instructed to transform Uzkimyosanoat Joint-Stock Company.

During the meeting, reports were heard from responsible officials and regional heads, and a dialogue was held with the heads of industry enterprises.