Production of polypropylene

200 000 000 USD

Project information

IRR

22%

NPV

$70 million

PP

6 years

Sector

Textile

Project status

Open for investment

Contact person

+998 (71) 202-02-10 (503)

Industry Outlook

Uzbekistan is recognized globally for its political stability and safety, with a population of 34 million people. The country benefits from several trade agreements, including a free trade agreement with CIS countries and Georgia, as well as most-favored-nation treatment with 46 countries, such as China, Japan, the US, EU member states, India, and South Korea. Ongoing negotiations are focused on securing the Generalized System of Preferences Plus (GSP+) with the EU, alongside discussions with China and South Korea aimed at eliminating customs tariffs on Uzbek goods.

Numerous foreign companies have successfully established operations in Uzbekistan. For instance, Indorama Pte. Ltd. from Singapore, Jinsheng Group from China, and UZTEX Group and Swiss Capital International Group, each with investments totaling $200 million, are among the key players. Additionally, Rieter AG from Switzerland has invested $16 million in the country, showcasing Uzbekistan’s attractiveness as a growing hub for international investment.

Infratructure costs

Uzbekistan offers competitive infrastructure costs, making it an attractive location for manufacturing investments. Key costs include:

- Gas: 12 cents per m³

- Electricity: 7 cents per kWh

- Water: 20 cents per m³

Labour availability

Uzbekistan offers a skilled and cost-effective labor force, ideal for the manufacturing sector. In this field the country has:

- 3 higher education institutions

- 4 faculties

- 1 200 graduates annually

Trade access

GSP+ agreement allows to export to EU at reduced or zero tariff for 6 200 products. CIS Free Trade Agreement creates more integrated and open market with CIS countries.

Tax holidays

Investors in Free Economic Zones (FEZs) can benefit from tax exemptions on land, property, water, and corporate income tax (CIT).

3 years: for investments between 0.3 - 3 million USD

5 years: for investments between 3 - 5 million USD

7 years: for investments between 5 - 10 million USD

10 years: for investments over 10 million USD

Project location