Overview
Uzbekistan possesses abundant natural resources which have traditionally been exported as raw materials and brought substantial earnings to the country. The government’s present strategy is to build processing capacities for producing higher value-added goods. The chemical industry plays a key role in this strategy. The national program for chemical industry development plans a $12.1 billion investment (including $1.7 billion in foreign direct investments and $9.2 billion in loans from financial institutions) in 31 projects in 2019-2030. These investments will be aimed at expanding and/or creating production of nitrogen, phosphorus, potash and complex mineral fertilizers; polymer products, including polyethylene terephthalate (PET), polyvinyl chloride (PVC), synthetic rubber, polystyrene, polyurethane, polyol, acrylonitrile-butadiene-styrene (ABS) plastic, polyacrylonitrile (PAN); melamine, methylamine, formaldehyde, urea-formaldehyde and melamine-formaldehyde resins, ethyl acetate, edible salt, bicarbonate sodium, chloroacetic acid, sodium nitrate, butyl acetate, trisodium phosphate, nitrocellulose, reagents, catalysts and chemical additives for the metallurgical, oil and gas and textile industries, as well as polymer fittings, biaxially-oriented polypropylene film (BOPF), plant protection chemicals and active ingredients for their production. On June 21, 2021, the government signed an agreement with International Finance Corporation (IFC) to support modernization of the chemical industry and attract foreign investment. In June 2022, the State Assets Management Agency announced the commencement of prequalification process for privatization of JSC Fargonaazot, one of the country’s largest producers of nitrogen fertilizers, defoliants and cellulose acetates. IFC is strategic advisor and Deloitte TCF LLP is the lead advisor on this transaction. The Dehkanabad Potash Plant is also scheduled to be privatized in 2022-2023.
| 2019 | 2020 | 2021 | 2022 estimated |
Total Local Production | 1,951 | 2,082 | 2,599 | 3,000 |
Total Exports | 837 | 821 | 1,131 | 1,200 |
Total Imports | 2,688 | 2,881 | 3,648 | 3,900 |
Imports from the US | 14.9 | 4.2 | 2.6 | N/A |
Total Market Size* | 3,802 | 4,142 | 5,116 | 5,700 |
Exchange Rates** | 8,839 | 10,056 | 10,610 | 11,100 |
*Total market size = (total local production + imports) – exports
**Exchange Rates = Uzbek soums per $1
Units: $ millions
Source: The State Statistics committee of Uzbekistan. Data for 2022 was estimated by Post using company project implementation progress reports. Imports from the U.S. data is from the U.S. census bureau.
Leading Sub-Sectors
Technologies and equipment for petrochemical production
Technologies and equipment for fertilizer production
Technologies and equipment for producing chemicals used in other industries
Opportunities
U.S. companies may bid on contracts to supply processing technologies and equipment to the country and to provide consulting, engineering and construction services. The government presently has increased its interest in licensing technologies for natural gas processing. All public sector tenders and technical requirements, specifications, documents, and procedural explanations are available on the website of UzKimyoSanoat (state-owned chemical company comprising 14 industrial enterprises) and Uzbekneftegaz.
For specific opportunities, businesses should review tenders on the company websites, tenderweek.com, or contact potential partners by phone or e-mail. In general, opportunities exist in natural gas processing; fertilizer and chemicals production; and construction, expansion, and modernization of production facilities.
Resources
U.S. companies and individuals interested in learning more about upcoming procurements and export opportunities are encouraged to visit the following websites: