Power cable production launched in Uzbekistan

Chinese joint venture Hayat Power Cable Systems (HPC Systems)has opened a power cable production plant worth $20.4 million inNavoi, the joint venture told Trend today.The company reported that the plant producing the high voltagecable and self-supporting insulated wires with cross-linkedpolyethylene (XLPE) insulation with a design capacity of 10,000kilometres per year was built in the Navoi free industrial economiczone.The project was self-funded using the venture's co-founders owncapital.It was previously reported that HPC Systems joint venture wascreated by the Uzbek Uzkabel company, Almalyk Mining-MetallurgicalComplex (AMMC) and Chinese Gulf Cable Trading Company. Uzbekpartners' equity participation is 25 per cent and the Chinesecompany 50 per cent.It is expected that about 60 per cent of the joint ventures'products will be exported.Uzkabel previously planned to implement the project worth $12.5million for the production of high-voltage power cables.The project is planned to be implemented through a loan from theUzbek Reconstruction and Development Fund and Uzkabel's ownfunds.A decision was made to attract AMMC as a major producer of rawcopper materials and foreign investors in the face of a Chinesecompany in 2011. The capacity of the project was increased and theNavoi free industrial-economic zone was chosen as the constructionsite.The Uzkabel joint venture is the largest cable and wiremanufacturer in Central Asia.The plant is capable of producing 3000 dimension-type of cable andwires which are used in energy, geology, rail transport,communications, machinery construction, mining industry andagriculture. The main supplier of raw copper is Almalyk MMC.The Gulf Cable Trading Company is one of the shareholders ofUzkabel JSC. Late last year, the Chinese company increased itsshare in Uzkabel JSC to 49.53 per cent. The second largestshareholder is Turkish Inter Kablo VE Bakir Sanayi Ticaret Ltd.which accounts for 34.55 per cent of the shares. The remainingshares belong to the staff and minority shareholders.Almalyk MMC is the only copper producer in Uzbekistan and one ofthe largest manufacturers of non-ferrous metals in Central Asia.AMMC accounts for nearly 90 per cent of silver and 20 per cent ofgold production in the country. The plant is composed of two miningcompanies, two processing plants and two metallurgical sites.Alongside Uzkabel JSC, there are two more enterprises producingcables and wires in Uzbekistan. JSC Andijankabel (Andijan) - acontrolling stake of the enterprise is owned by the Russian companyFarial JSC (Samara), as well as Uzbek-German JV Deutsche Kabel AGTashkent (Tashkent).The Navoi FIEZ was created in December 2008. The term of itsoperation is 30 years with the possibility of a furtherextension.During this period there will be special customs, currency and taxregimes, a simplified procedure for entry, stay and departure, aswell as obtaining permits for employment of non-resident citizensof Uzbekistan. Tax exemptions will be applied with a minimuminvestment of three million euros.According to Navoi FIEZ, currently some 16 enterprises that producedevices to receive digital TV, ADSL-modems, DSLAM, spare parts forcars, cosmetics, pipes and other products, operate in the zone'sterritory.