Chemicals/Fertilizers
Brief market overview. Chemical products and fertilizers market is estimated at $3.4bn (~$1.3bn domestic production and $2.1bn imports). Fertilizers production dominates chemicals market of Uzbekistan. State-owned Uzkimyosanoat JSC consists of 14 enterprises, 13 distribution entities, logistic companies, etc. It produces 180+ types of products.
Uzbekistan possesses over 1644 deposits of 100+ of mineral resources for chemical industry, including natural gas, potash, phosphates and others.
Production, export and import. Uzkimyosanoat JSC is only in the region to produce all three types of fertilizers (N-nitrogen, P-phosphorus and K-potassium), methanol and caustic soda. Also the company is the third major producer of urea and ammonia in Central Asia and Eastern Europe, the fourth on production of ammonia and ammonium sulfate. Besides of mineral fertilizers, chemical plant protection agents and inorganic products, the company produces organic chemicals, synthetic threads and polymeric materials. It also has production of chemicals for energy sector and gold mining.
In 2016 around 50 products of fertilizers and chemicals for $840mn (6.9% of total exports) were exported to 40+ countries, including CIS, European, SE Asia, China, Iran, Australia, Brazil.
Import of chemicals in 2016 was $2.1bn (17.0% of total), mainly from CIS and EU countries.
Implemented Projects. During last 10 years following sizeable projects were implemented:
- 2002-2006 and 2011-2015 - Kungrad Soda Ash Plant (1st and 2nd stages). Capacity yearly: 100K and 200K tn of soda ash. Total investments: $359.5mn
- 2007-2010 and 2011-2015 - Dekhkanabad Potash Fertilizer Plant (1st and 2nd stages). Capacity yearly: 200K and 600K tn/year of potassium. Total investments: $382.4mn
Future projects. Uzkimyosanoat JSC. In September 2017, Uzbekistan President approved Program of the Development of the Chemical Industry for 2017-2021. According to this document, 43 projects worth $3.1bn will be implemented during the period.
Implementation of the Program will increase production 2x, export 3x by 2021. As result of expansion in the industry the share of mineral fertilizers will decrease from 74% to 55%.
Gasochemical enterprises. After completion Gas-To-Liquid Plant in Q4 2020, Shurtan Gas Chemical Complex will increase polyethylene production capacity from current 125K tn to 450K tn. According to the Ministry of Economy, by 2020 Uzbekistan will increase the polyethylene production by 4.1 times: from 125K tn in 2015 to 512K tn in 2019.
Service companies. In 2017-2019 General Electric plans to implement 13 projects in Uzbekistan totaling $388mn, including establishing an engineering center at Shurtan Gas Chemical Complex and a service center for repair and maintenance chemical equipment at Bukhara Mechanical Repair Plant.
We expect in coming years the chemical industry will be one of the main drivers for growth in Uzbekistan. In recent years, the country promoted traditional for itself chemical industry based on fertilizers as well as new products and heavy chemical industries such as the production of synthetic fuel and polypropylene goods from natural gas.