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Production of Flat Glass

Investment Project
for production of flat glass with capacity 100 thousand tons per year
in Navoi Free Industrial Economic Zone, Republic of Uzbekistan


1. Project Initiator: Joint Stock Company “Uzbuildingmaterils” - www.uzsm.uz

2. Local market demand: Due to high demand on glass and glass ware in Uzbekistan, the project assumes to sell 60% of total production to local market.

3. Glass export: 40% of goods are expected to export to neighboring countries (Kazakhstan, Tajikistan, Turkmenistan, Afghanistan, and others).

4. Glass manufacturers in Uzbekistan and Central Asian Region: Uzbek glass plants have produced 5,7 mln.sq.m. of glass in 2008, including 5 mln.sq.m by Stock Company “Kvarz”, and 0,7 mln.sq.m. - Joint Venture “Gazalkentoyna”.

A total flat glass market capacity in Uzbekistan in 2008 was approximately 10 mln.sq.m., including imported 2.3 mln.sq.m. Construction sector is the main consumer of flat glass in Uzbekistan. It has more than 80% of output in its share.

There are 3 glassworks in Central Asian region:
Producers Production Capacity,
mln. sq.m. per year (4 mm)
Stock Company “Kvarz” (Uzbekistan) 5,0
Joint Venture “Gazalkentoyna” (Uzbekistan) 1,62
Tokmak Glass Plant (Kyrgyzstan) 9,3

5. A required land area, including the land for production capacities, engineer infrastructure (m2/ hectare): the land for glass plant area is chosen in Free Industrial Economic Zone in Navoi Region. The required land for industrial area is 90 000 sq.m. (9 hectare, including 3 hectare for industrial premises). Open cast mile of silica sand production and enhancement makes 54 hectares.

6. Required engineering provision:
- railway branch;
- 62 thousand cubic meters/year of water supply;
- 31500.0 thousand K.W.H./year of power supply;
- 30000.0 thousand cubic meters/year of gas supply with atmosphere pressure;
- sewerage (thousand cubic meters/year).

7. Project’s costs: 85 mln.USD.
The estimated project costs depend on the chosen equipment.
The proposed technological line costs are the following:
- flat glass production equipment - 40 mln. USD
- silica sand enrichment equipment – 11,8 mln. USD
- construction and installation works – 19,2 mln. USD
- other additional works and costs - 14 mln. USD.

8. Sources of Project financing: direct foreign investment.

9. Terms of Project implementation: 30 months after financing started.

10. New jobs: 600, including: managers / administration - 60, engineers / technical staff - 40, and workers – 500.

11. Annual make quantity: 100 thousand ton (50000 thousand USD)
- for local market - 57,5 thousand ton (27500 thousand USD)
- for export – 37,5 thousand ton (20000 thousand USD)
- for own consumption - 5 thousand ton (2500 thousand USD)

12. Annual Project proceeds: 47.500 thousand USD.

13. The condition of development and appraisal of project construction documents.
Construction documents will be developed after the approval of equipment supplier and FS.

14. Demand in raw materials (materials and components), including the ones manufactured in Uzbekistan and imported raw material resources: There are all raw materials required for flat glass production are available in Uzbekistan excluding salt cake.

14.1. Silica sand: Due to the fact that new glass plant will be located in Navoi Region, it is favorable to develop own open cast mine with concentrating area on Djeroy Deposit of silica sand.

Djeroy Deposit of silica sand is located in Tamdin district, Navoi region, 14 km southward of Tamdimbulak administration centre, 60 km to the northeast from Zarafshan town connected with main highways. The nearest railroad station is Yangi Zaafshan.

Djeroy Deposit of silica sands comply with the standards and are free-milling. It is not developed now.

14.2. Soda ash: Kungrad Soda Plant has a production capacity 100 thousand ton/year.

14.3. Salt cake: Salt cake is imported from Turkmenistan. Nowadays the issue related to own salt cake production in the Uzbekistan is discussed with Joint Stock Company “Uzkhimprom”.

14.4. Dolomite: the major and the largest dolomite deposit in the republic is Dekhkanabad open cast mine with 2624 thousand tons.

14.5. Limestone: it is expected to get the limestone for a new glass plant from Urgaz Deposit (Tashkent Region) with 94.6 mln. tons of approved resources.

14.6. Cullet: Cullet is used from own production divergence, and could be purchased in local market as well. The quality of the above mentioned raw materials complies with all local standards requirements.

15. Glass production method includes the following stages:
- raw materials storage
- raw material preparation
- burden preparation
- glass melting
- formation
- sheet glass annealing
- glass quality control
- glass cutting, transporting and nesting pattern
- powder laying
- flat glass packing
- finished production storage