Overview of key events in Uzbekistan's industrial sector for 2022

Finance Materials 13 January 2023 09:20
Baku, Azerbaijan Trend News Agency
Overview of key events in Uzbekistan's industrial sector for 2022

Trend News Agency presents an overview of the most important events in 2022 in the industrial sector of Uzbekistan.

Uzbekistan shows stability and sustained growth amidst global market instability, global price shocks and uncertainty. According to the Centre for Economics and Business Research (CEBR), the gross domestic product (GDP) of Uzbekistan per capita of $9,478 in 2022.

Vehicle production

Uzbekistan’s UzAuto Motors company has exceeded the annual production plan, and therefore the consumption of components with chips, planned for 2022, also increased. At the beginning of this year, the company planned to produce 280,000 cars, which is 21 percent more than in 2021. Due to increased demand for Chevrolet cars the company managed to increase its planned production for 2022 to 340 thousand cars, which will already exceed last year's volume by 44 percent. UzAuto Motors has rolled out 290,000 vehicles from January to November 2022.

Meanwhile, this year, Uzbekistan prepared the strategy for the development of the electric car industry. Uzavtosanoat has signed a memorandum with the Chinese BYD Auto Industry manufacturer of electric vehicles. Within the framework of the memorandum, the companies agreed to cooperate in the production of electric vehicles. The document was the first step toward the development of the production of electric vehicles in Uzbekistan.

Bus production

As for buses, Uzbekistan significantly increased bus production from January through November 2022. According to the State Statistics Committee, Uzbekistan produced a total of 1,125 buses along 11M2022. Meanwhile, the growth rate compared to the corresponding period in 2021 amounted to 32.8 percent.

Azerbaijan, Uzbekistan cooperation in cotton industry

PAHTAMASH (Uzbek manufacturer of cotton-cleaning equipment) expressed willingness to build a plant in Azerbaijan. In particular, the company was interested in equipping plants in liberated from Armenian occupation territories of Azerbaijan, as well as modernizing Azerbaijan’s existing plants.

Uzbek PAHTAMASH planned to train Azerbaijani specialists in order to increase cotton production. Uzbekistan and Azerbaijan discussed cooperation matters in the field of cotton production. Following the discussions, PAHTAMASH and Azerbaijan’s Azernagro LLC signed a contract for $726,000 and planned to more than double its value, up to about $2 million.

Meanwhile, Uzbek manufacturer has been cooperating with Azerbaijan since 2016-2017. Azerbaijani companies such as MKT Production Commerce LLC, Azerpambiq LLC, P-Aqro LLC, as well as Azernagro LLC are partners of PAHTAMASH.

Furthermore, PAHTAMASH products are also supplied to Türkiye, Russia, Turkmenistan, Tajikistan, Kazakhstan, Kyrgyzstan, Afghanistan, and other cotton-growing countries.

In the nearest future, Uzbek manufacturer plans to supply equipment through Azerbaijan to new markets.

Production of synthetic jet fuel from synthesis gas of Uzbekistan

The Uzbekistan GTL complex (UzGTL) started production of synthetic jet fuel in 2022.

A sample taken from the first batch of synthetic kerosene produced at the GTL plant was sent to the SGS laboratories in Estonia, Belgium, and France for analysis in order to obtain a certificate of conformity.

The Uzbekistan GTL plant has received endorsement from the international organizations IATA, ASTM International, and Def Stan, and is granted permission to use GTL kerosene as a synthetic component for aviation fuel.

The Uzbekistan GTL complex intends to produce import-substituting oil products and hydrocarbons with a total value of $1 billion per year.

Furthermore, this year, UzGTL has started the production of synthetic diesel products, the first of a series of end products from its advanced gas-to-liquids process.

Textile industry

Uzbekistan has planned to create an institute for the textile industry in the Namangan region in 2022. The project is being developed jointly with the municipality of the Namangan region. It is planned that the Institute of Textile Industry will be created on the basis of the Namangan Institute of Engineering and Technology.

At the same time, Türkiye’s Akça Holding expressed willingness to launch a $250 million textile complex in Uzbekistan. It is planned to launch manufacturing of products from yarn, terry towels, home textiles, knitwear, military uniforms, linen, dyed fabric, and other textile products oriented to the markets of the USA, Europe, Brazil, Canada, and other countries. As a result, 12,000-15,000 new jobs will be created. Uzbek side expressed its readiness to provide comprehensive assistance at all stages of the project, as well as in the process of developing new investment initiatives.

Meanwhile, supplies of textile products from Uzbekistan to Kyrgyzstan from January through November 2022 amounted to $457.9 million, which is an increase of 29.2 percent over the same period in 2021 ($354.5 million).

Statistics of industrial production in 11M2022

The value of industrial production in Uzbekistan from January through November 2022 amounted to $43.1 billion, which is an increase of 22.5 percent compared to the same period of 2021 $35.2 billion.

The value of production of the mining industry for the corresponding period amounted to $4.2 billion, which is an increase of 22.9 percent compared to the same period last year ($3.4 billion).

During this period the value of production in the manufacturing industry increased by 22.8 percent compared to the same period in 2021 ($29.1 billion), reaching $35.7 billion.

From January through November 2022 the value of production in the field of electricity, gas, steam, and air conditioning reached $2.9 billion.