Tasks defined for the accelerated development of the chemical industry

On June 2, President Shavkat Mirziyoyev chaired a meeting on the tasks for the accelerated development of the chemical industry and the implementation of investment projects in the regions.

It was noted that the country's economy continues to develop 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 largely limited to the production of mineral fertilizers. Since then, the sector has attracted $8.3 billion in investment, and 87 major production facilities have been commissioned.

More than 60 new high-value-added products have been introduced, including PVC, green hydrogen, expanded polypropylene, and BOPP film. This has created a solid raw-material base for the production of thousands of new products across various sectors of the economy.

As a result, the industry's exports have tripled, while employment has exceeded 50,000 people.

At the same time, it was noted that the sector still has significant untapped potential. Over the past nine years, industrial output nationwide has grown by an average of 6.3 percent annually, while growth in the chemical industry has remained below 3 percent. Imports of chemical products have quadrupled, reaching $4.5 billion per year.

The President also noted that JSC Uzkimyosanoat remains primarily focused on large enterprises within its system, while there is virtually no systematic engagement with the more than 5,000 enterprises operating across the industry. Their challenges and proposals are not being sufficiently studied.

Particular attention was paid to restructuring production, increasing value-added output, and reducing energy costs.

The country produces 1.5 million tons of ammonium nitrate annually, consuming 1.07 billion cubic meters of natural gas. Meanwhile, developed countries are reducing the use of ammonium nitrate, shifting to urea and water-soluble fertilizers in agriculture and to porous prill ammonium nitrate in the mining industry.

President Shavkat Mirziyoyev noted that the production of porous prill ammonium nitrate, which has the same production cost as conventional ammonium nitrate, doubles value-added output. Responsible officials and heads of chemical enterprises were urged to give serious consideration to expanding such projects.

It was also pointed out that cyanide salts produced at Navoiazot and valued at $3,700 per ton can be used to manufacture adhesive products worth up to $8,000 per ton. Responsible officials were instructed to begin implementing 10 low-tonnage chemical projects with a total value of $1 billion in the cluster area near Navoiazot.

The President emphasized that significantly greater value-added can be achieved through the full utilization of existing geological reserves.

Karakalpakstan, Surkhandarya, Kashkadarya, and Navoi regions possess 550 million tons of sodium and potassium reserves, as well as 20 million tons of bentonite. Through deep processing of these resources and the production of caustic soda, value-added output can be tripled.

The identified reserves of serpentinite in Jizzakh region and Karakalpakstan amount to 1.5 million and 500,000 tons, respectively. Processing serpentinite with sulfuric acid makes it possible to produce magnesium oxide valued at up to $5,000 per ton. Further deep processing of serpentinite will create opportunities for the production of nickel, chromium, and cobalt, which are important raw materials for the electrical engineering industry.

Responsible officials were instructed to develop and begin implementing a three-year program aimed at doubling reserves of key raw materials required by the chemical industry, including phosphorite, halite, mirabilite, and serpentinite. In the field of serpentinite processing, the task was set to launch projects worth at least $200 million.

The country imports household chemical products worth $300 million annually, while the regional market for these products is estimated at $2 billion.

For example, an entrepreneur in the Angren Free Economic Zone established cooperation with the renowned global company Henkel. The enterprise has now been acquired by the company. Plans are in place to supply locally manufactured products to Commonwealth countries.

To expand such projects, dedicated sites will be allocated in one of the capital's industrial zones for initiatives in the household chemicals sector. A total of $50 million will be allocated for this purpose, with the condition that the commissioned enterprises, together with their brands, will subsequently be sold to the private sector as ready-made profitable businesses.

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

The meeting also reviewed opportunities in the mineral fertilizer market.

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

Responsible officials and khokims were tasked with implementing 42 projects worth a total of $2.8 billion over the next three years. Through these projects, annual production of nitrogen fertilizers is expected to increase from 2.8 million tons to 4 million tons, phosphate fertilizers from 400,000 tons to 900,000 tons, and water-soluble fertilizers from 100,000 tons to 400,000 tons by 2030.

It was noted that the implementation of large-scale projects in the production of water-soluble fertilizers, polymers, household chemicals, and inorganic chemicals will increase demand for specialists in such advanced fields as nanochemistry, green chemistry, supramolecular chemistry, and AI-based chemical modeling.

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

For this purpose, an innovative scientific, industrial, and educational cluster for the chemical industry will be established on a 60-hectare site in Mirzo Ulugbek district. A Chemical Technology Innovation Center will be created within the cluster in cooperation with South Korea. The center will reimburse up to 50 percent of costs associated with pilot and experimental projects.

Responsible officials were instructed to develop and begin implementing a program for launching more than 350 chemical industry projects worth $17 billion.

The President emphasized that achieving these ambitious goals requires managing the industry based on modern, science-based approaches. In this regard, responsible officials were instructed to carry out the transformation of JSC Uzkimyosanoat.

During the meeting, reports were heard from responsible officials and heads of regions, followed by discussions with representatives of industry enterprises.