Why Uzbekistan for сellulose production

1.

Ministry of Investment,
Industry and Trade of
the
Republic of Uzbekistan
Why Uzbekistan for сellulose
production
May 2024

2.

Why Uzbekistan for cellulose production
Uzbekistan is the leading country in Central Asia in the production of Cellulose
Information on the production & trade of cellulose products in Fergana
(mln $)
88
10,7
6,5
50
Availability of quality raw materials and proximity to large markets
Small economic zones and taxes opportunity
53
Well developed infrastructure
Quality cotton raw material base
gas
12 cents/m3
Availability of affordable labor
water
6-61 cents/m3
electricity
7 cents/1 kWh
7,7
2,8 3,4 2,7
Export
Source: Statistics Agency
logistics -
Production
Import
2021
2022
2023
Fergana
Region
Although the export situation is increasing, the impo rt
situation can be seen to change in the last two years
Fast growing domestic and international markets and
significant import substitution opportunity
Tariff free access to EU consumers, 4 hours from Middle
East markets and adjacent to the large Chinese market
Currently, the annual need for paper in the republic
is a total of 350,000 tons
GSP+
In proportion to the increase in
population, construction works will also
increase.
Central Asia population
Uzbekistan population
28%
2050
46m
2025
36m
25%
2050
100m
2025
80m
CIS Free Trade Zone

3.

Why Fer gana Region for cellulose pr oduct ion
Uzbekist an has at t r act ed int er nat ional & regional nam es
Potent ial raw m at er ials and convenient locat ion
Qualit y r aw
m at er
cent r e, t her e is also st r eam lined co-or dinat ion acr oss m ult iple st akeholder
s ials
Well developed
networ ks
gas,
Raw mat er ial
Deposit s
Cott on
285 thousan d tons
Addit ional
chem icals
enough
wat er ,
elect r icit y
Fergana
Region
Low-cost , skilled workfor ce available in Fergana Region
Str at egic locat ion wit h well-developed logist ics
net wor ks to key m ar ket s
Int er nat ional air por t
3,9 million
people
40% of the
workfor ce
under 30
More than 1.6
thousand
econom ically
act ive
populat ion
Road access to key mar ket s
Rail access to key mar ket s

4.

Message to investors
Production of Cellulose products
ROicals
tr eat m ent Product ion of cellulose pr oduct s
Finding chem
Product ion of qualit y product s suit able for
export
Deliver y
Creat ion of new ty pes of pr oduct s
Cotton picking
Mat er ials processing
Description of the opportunity
Export
Packaging
Local ma r ket s
Reasons to invest
establishm en t of an ent er pr ise pr oducing cellulose pr oduct s
Potential locations
Access to raw m at er ials
Low costs oper at ions
Domest ic m ar ket oppor t un it ies
Low costs - labor
Expor t m ar ket access
Labour availabilit y - skilled
Local J/V par t ner available
Invest m en t incent ives
Infr ast r uct ur e - utilit ies
1.
Fergan a region
Domestic and regional market opportunity
Availabilit y of
raw m at er ials
Uzbekistan has mo re than 3.5 m illion tons of raw cot ton, a nd additional
chem icals can be fin d for the pr oduct ion of cellulose.
The ann ual need for paper in the republic is a tot al of 350,000 tons
Tr anspor t at ion by tr uck to Chin a fr om Uzbek border only 200km
Mar ket
oppor t un it ies
Low-cost base
Logistics
Availabilit y of
labour
Existing subsupply
Cur r ent ly , the annual need for paper in the republic is a tot al of
350,000 tons
The dem and for cellulose (paper ) war e pr oduct s is incr easing
Ener gy (7 cent s per 1 kWh)
Enhan ced regulat or y fr am ewor k
Cheap labor
Incen t ives: Free econom ic zones (Angr en FEZ) offer tax breaks on land, CIT , wat er .
Availabilit y of raw mat er ials
Suppor t for capit al invest m en t
Tr ain connect ion to border ing count r ies
Free Tr ade Agreem ent s: CIS Free Tr a de Agreem en t , GSP+
Tr uck to EU count r ies – 15 days
Tr uck to China – 3 days
Government initiatives to support investors in the construction materials industry
Support available to investors
MIIT
Signposting within Uzbekist an and site visit itiner ar y ,
Engineer ing
Fact or y oper at or s
Regional aut hor it ies
Supply wit h necessar y land to build factor y
Main t en an ce
Managem ent
“Uzkim yosanoat ” associat ion
Suppor t to analy ze the mar ket
Regional aut hor it ies
Site select ion and analysis
Ut ilit ies
Access to wat er and elect r icit y….
Custom s
Appr oved expor ter progr am
Existing supplier s for raw mat er ials
Im por t of machiner y and equipm ent fr ee of cust om s

5.

Gover nm ent suppor t to invest or s
• Dedicat ed invest m ent m anager t o suppor t invest or s as
t he est ablish oper at ions and develop expor t m ar ket s
• Gover nm ent suppor t for :
– Fur t her infor m at ion suppor t and facilit at ion of
m eet ings wit h r elat ed par t ies incl. gover nm ent
agencies
– Sit e ident ificat ion and scoping
– Infr ast r uct ur e developm ent at st at e cost
Infr ast r uct ur e may include wat er access, gas supply , elect r icit y, road.
This applies to invest m ent s exceeding appr ox. US $16 mln.
– Est ablishm ent at fr ee econom ic zones.
Cont act
Abdulham id Nabiev
Head of the Depar t m ent
Invest m ent s, indust r y and tr ade Depar t m en t of
Fergana r egion
Tel: +99890 317 11 70
Em ail: a.nabiyev@far invest it siy a.uz