Uzbekistan: German company builds glass container plant

German HEYE-Glass Winkler & Co. has started construction of a factory for manufacture of glass containers in Tashkent with a total cost of EUR 23 million.
According to Ozmevasabzavotuzumsanoat (Uzbek…

German HEYE-Glass Winkler & Co. has started construction of a factory for manufacture of glass containers in Tashkent with a total cost of EUR 23 million. According to Ozmevasabzavotuzumsanoat (Uzbek Fruit, Vegetable and Wine Industry) holding, which is paying for the plant, the new facility will produce containers for canned fruit and vegetables, wine and vodka products, as well as bottles for beer and mineral water. The plantwill have a daily capacity of 150 tonnes of glass and a projected annual output of 124.7 million containers. The facility will start production in early 2004. The project is being financed with EUR 19.2 million credit from the German Vereins und Westbank AG and funds from the Uzbek side. The credit period is 8.5 years, including two years“ grace period under insurance covering of Hermes Agency and the guarantee of the Uzbek government. The agreement with the German company on delivery of equipment for the plant worth EUR 22.5 million was signed in early 2002. A significant part of the plant“s glass container output will be used by the holding“s canning and winemaking operatons and exported to neighbouring countries. The annual consumption of containers by the Uzbek food-processing industry is estimated at 650 million a year. There is one other container plant in Uzbekistan, Quartz JSC in Quvasoy, Ferghana region, with a capacity of 320 million glass containers a year. Italian Techint SPA has completed a USD 20.25 million modernisation of glass manufacturing capacities at the facility. Construction of the glass container plant in Tashkent is part of the Ozmevasabzavotuzumsanoat holding“s programme to development its export potential. . 12 projects costing USD 34.5 million are envisaged under the programme. The programme will be financed from direct foreign investments and foreign credits, as well as the holding“s own funds.