By Industry

Electrical Engineering Industry

Here You can download the presentation of the Electrical Industry of Uzbekistan

Uzbekistan has an advanced electrical industry. The primary types of electrical products produced in Uzbekistan are cable conducting products, electronic equipment, power transformers, low-voltage equipment, various electrical equipment, refrigerators, elevators, lighting units, electro-thermal equipment etc.

The electrical industry enterprises are united into association “Uzeltehsanoat”, which became a successor to reorganized “Radioelectrontehpribor” - Uzbek state electronic, electric and instrument-making industry concern in 1994.

At present time 28 enterprises of various types of ownership are members of the association, including 13 Public Joint Stock companies, 11 Limited Liability Companies, etc.

Eight enterprises are enterprises with foreign capital and their founders are companies from Germany, USA, Russia, Great Britain, Turkey, and Switzerland.

The most dynamically developing enterprises producing cable conducting products are the following: JV Public Joint Stock Company “Uzkabel”, JV Public Joint Stock Company “Deutsche Cable AG Tashkent”, JV Public Joint Stock Company “Andijankabel” .JV Public Joint Stock Company “Uzelectroapparat-Electroshit ”, Public Joint Stock Company “Rele I avtomatika” specialize in low-voltage equipment production. Each of these enterprises attracted foreign investment.

JV Public Joint Stock Company “Chirchikskiy transformatorniy zavod” produces power equipment and high-voltage equipment. Main shareholders of the mentioned above enterprises are foreign legal entities. Public Joint Stock Company “Foton”, JV “TS-Tehnologiya”, JV “UMT-Radio”, Public Joint Stock Company “Kinap” and KP RTO VT enterprises specialize on semiconductor devices, appliances, communication facilities. Public Joint Stock Company “Samarkandskiy liftostroitelniy zavod”, Public Joint Stock Company “Algoritm”, Public Joint Stock Company “Uzelectroterm”, Public Joint Stock Company “Oniks”, and Public Joint Stock Company “Sino” specialize in industrial production (elevators, electro-thermal equipment) and consumer nonfood goods (refrigerators, deep-freezers, air-conditioners, television sets, cut-glass ware etc.)Tashkent Microelectronics Research Institute, “Foton” design department, research-and-production company “Quark” - specialize on R&D and production of goods of their own design. Public Joint Stock Company “Uzkabel” is an example of successful investment, 64% of its shares were sold to foreign partner, and the foreign partner assumed capital commitment of 16.3 million USD for 5 year term. The funds are directed to technical re-equipment of enterprise and development of new cable conducting production. For local needs JV Public Joint Stock Company “Deutsche Cable AG Tashkent” developed steel wire buckle production for cotton bale tiling.

According to tender results in 2007 Russian company “Peresvet-Invest” bought 75% of stocks of the Public Joint Stock Company “Samarkandskiy Liftoviy Zavod” with capital commitment of 7 million dollars.

Investment and tax climate

Uzbekistan provides favorable investment and business climate promoting creation and operation of enterprises with foreign capital.

Frst, legislative system of Uzbekistan does not limit foreign investor’s share for creation of a joint venture or foreign enterprise.

Second, tax climate in the Republic of Uzbekistan is favorable. Particularly, corporate income tax rate is 10% that is the lowest tax rate among countries of the former Soviet Union and one of the lowest in the world. ax privileges are stipulated in case of creation of a new enterprise: during the first year since registration the enterprise pays 25% of set rate of corporate income tax and property tax, during the second year - 50% of the taxes rate. Creation of export-oriented production is stimulated by progressive reduction of corporate income tax, property tax and by repayment of VAT depending on export share in total sales volume of their products.

Third, technical re-equipment of industrial enterprises is stimulated through duty free import of equipment and tax privileges. Besides, according to the decree of President of the Republic of Uzbekistan of April 11, 2005 #3594 “On additional measures for stimulation of attraction of direct private foreign investment”, enterprises with foreign capital created in overpopulated regions of the republic are exempt from the following taxes for a period from 3 to 7 years depending on the amount of attracted foreign capital:
- corporate income tax;
- tax on property;
- municipal improvements and social infrastructure tax;
- obligatory assignments to the highway fund of the Republic;
- single tax for micro-firms and small-scale enterprises

If foreign investment accounts from 300 thousand to 1 million USD, the enterprise with foreign investment gets the aforesaid tax exemptions for 3-year period, if the foreign investment accounts from 1 to 10 million USD the enterprise gets tax exemptions for 5-year period, if investment exceeds 10 million USD – the enterprise gets tax exemptions for 7-year period.

The guarantee of application of tax privileges during the fixed time period is in one of the clauses of the decree stating that “in case of deterioration of investment conditions by subsequent legislation the tax privileges are valid within the whole grace period.”

Investment opportunities

The production of semi-conductors, dry cast transformers, halogen electric light bulbs, integrated circuits, sophisticated home appliances, and photoelectric stations are promising directions of the industry’s development. The market of mobile phones is characterized by sustainable growth of demand. It’s important that Uzbekistan possesses copper, silver, gold, zinc, secondary aluminum production which are a feedstock for electric industry.

According to privatization program approved by the decree of the President of the Republic of Uzbekistan of July 20, 2007 #672, sale of share holdings of leading electric industry enterprises is planned for 2007-2010 period. In particular, it is planned to sell share holdings of the following enterprises: 75% of shares of Public Joint Stock Company “Foton”, 45.4% of shares of Public Joint Stock Company “Algoritm”, 88.8% of shares of Public Joint Stock Company “Sino”, 54.92% of shares of Public Joint Stock Company “Oniks”, 58.71% of shares of Public Joint Stock Company “Uzelektroterm”.

Public Joint Stock Company “Foton”

76% of shares are offered for sale.

The enterprise was created in 1942 for production of multi-purpose electric bulbs.

The plant started semi-conductor production in 1958. In recent years the enterprise started production of electronic cash registers with fiscal memory block, television sets, energy saving bulbs, solar energy converters, etc.

The enterprise is located in Tashkent. Number of employees is 718 people. Total area of the enterprise is 8.95 ha, including industrial premises – 35.3 thousand square meters. A complex of round and covered storages is located on the territory of the enterprise.

The enterprise has an advanced power economy, including production of liquid nitrogen and nitrogen gas, hydrogen, oxygen, deionized water, high pressure and low pressure air, a complex of equipment for machine aided design and automated production of high-precision rigging, punches and transfer molds. A plastic wares workshop (moulding automatic machinery, including ENGEL firm moulding automatic machinery on 5.5 kilogram) operates there.

Investments proposals and projects of Public Joint Stock Company “Foton” include the following directions:
- production of video and television techniques of modern generation, various electronic home appliances;
- production of energy saving luminous tubes;
- intensification of specialization and an opportunity to develop new types of electronic goods;
- production of photovoltaic stations;
- production of solar collectors for water heating

Public Joint Stock Company “Algoritm”

45.45% of shares are offered for sale.

Public Joint Stock Company “Algoritm” (former factory of electronic computers) was built in 1982-1987. Total area occupied by the enterprise is 23.5 ha. Production space is 75 thousand square meters, number of employees is 376 people.

“Algoritm” is a united complex of combined production facilities, connected with each other by technical, economic, power and organizational means; it allows to utilize production resources fully, to combine production stages rationally, to reduce duration of production cycle, diminish transportation costs, improve production management.

The enterprise is situated in Tashkent, in district with convenient railway and motor transport system. Due to good industrial layout, restructuring of the enterprise is possible. Production infrastructure is fully in operational state. Reliable power, natural gas, and water supply, sewer system, waste disposal facilities are available.

The following major workshops are functioning: mechanoerecting department, electroplating department, paintwork place, circuit board production department, plastics component production department, assembly and wiring shop.

Due to enterprise conversion, potential of the enterprise is poorly used, investment is required for new production development.

Investments offers and projects of Public Joint Stock Company “Algoritm” include the following directions:
- production of multilayer circuit boards, and on its basis – production of electronics package and finished commodities including electronic home appliances;
- development of production of energy recourses registration devices;
- production of computer equipment.

Public Joint Stock Company “Oniks”

54.92% of shares are offered for sale.

The enterprise was build in 1948 and specializes in production of electronic equipment (condensers, resistors, vacuum switches, etc.). The enterprise is situated in Tashkent. In present time the enterprise produces chiefly home and office lamps, including crystal glass lamps, varied crystal glassware, electronic goods.

Total area of the enterprise is 18.6 ha, area of major industrial premises is 30.5 thousand square meters. Number of employees is 735 people.

There are a glass manufacturing production, electroplating workshop, waste disposal facilities, mechanoprocessing workshops, electronic goods production workshops, electrical ceramics production workshop, assembly workshop etc at the enterprise.

Investments offers and projects of Public Joint Stock Company “Oniks” include the following directions:
- automation of crystal ware production;
- development of new production utilizing glass fiber roving as raw material (JV “Uzglaszayden”).
- production of luminous lamps.

Public Joint Stock Company “Sino”

88.8% of shares are offered for sale.

The Samarqand refrigerator factory was put into operation in 1974. Before the 90-s 5 models of refrigerators were developed, fist under the brand “Yulduz”, then “Samarqand”, later “Sino”.

In 2002 the enterprise was restored to life, new staff came to the enterprise, production of a range of modern models of refrigerators, deep-freezers and air-conditioners started.

The enterprise is situated on the area of 6.92 ha; industrial premises occupy 53 thousand square meters. Number of employees is 316 people.

There are departments for production of refrigerator structural components, plastic components, painting workshop, assembly department, auxiliary production and corresponding infrastructure, including gas supply, artesian well, and power supply etc.

Investments offers and projects of Public Joint Stock Company “Sino” include the following directions:
- acquisition of manufacturing equipment for production of component parts and deepening localization of component parts production;
- development of new models of refrigerators, deep-freezers, and air conditioners.

Public Joint Stock Company “Uzelektroterm”

58.71% of shares are for sale.

Uzbek scientific-and-production union “Elektroterm” was founded in 1963 on the basis of electrical factory and transformers producing plant. The enterprise produced thermal-electric equipment for wide application used in industrial projects and in accommodation space, including: pipe-heaters, step-down furnace transformers with power rating from 10 to 160 kW, electric radiators, electric water heaters, electric ranges. It was reorganized into Public Company “Uzelektroterm” in 1994.

It is situated in Namangan, 500 meters far from railroad. The motorway passes near the factory. Total area of the enterprise is 6.52 ha. The site of production facilities is 13000 square meters. Area of available warehouses is 1.34 ha. Number of employees is 236 people. The enterprise has various types of manufacturing equipment such as: metal-cutting equipment, metal-working machinery, press-forging equipment, galvanic equipment, etc. There are water supply, power supply, gas supply, sewer system at the enterprise.

Investments offers and projects of Public Joint Stock Company “Uzelektroterm” include the following directions:
- creation of a joint venture for production and sale of tubular electric heaters;
- production of consumer goods corresponding field of activity of the enterprise.

State enterprise “OKB FOTON”

Special design office “Foton” was created in 1967 as a subdivision of Tashkent factory of electronic engineering. In 1975 Tashkent factory of electronic engineering became a part of production and technical union “Foton”. In 1995 the union was privatized and reorganized into Public Joint Stock Company “Foton”, excluding special design office “Foton” which remained independent state enterprise.

Basic activities of the special design office are as follows: engineering development and production of electronic techniques, including microcircuits, rectifier diodes and other special-purpose devices.

The enterprise is situated in Tashkent. Total area is 0.721 ha; production area is 2871 square meters. Number of employees is 327 people.

Planned investment projects are as follows:
- development of advanced diodes and microcircuits production;
- consumer goods production (wristwatch, spectacle lens).

State enterprise Research-and-production department “KVARK”

Scientific and production complex “KVARK” was created as independent sub-division of production and technical union “Foton” in 1989 for fast development and production of semi-conductor goods: voltage suppressors, diodes, and other electronic goods.

After privatization of production and technical union “Foton” the complex became a state enterprise, it has a small-scale enterprise status. It is situated in Tashkent city.

Area of production facilities is 860 square meters; it is situated in the same building together with “OKB Foton”. Main field of activity is semiconductor voltage suppressors and pulse diodes production and development; the enterprise developed and produced more than 570 types (brands) of voltage suppressors with various levels of pulse energy absorption.

Investment proposal is advanced electronic goods production and development.

Completion of construction of a factory producing 9.4 thousand tons of glass fiber roving with 14 micrometer fibre diameter

According the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan №351 dated September 12, 2000. The stock company “Uzpromstroybank” finances production of technical glass fiber project carried out by JV “Uzglaszayden” under the guarantee of Ministry of Finance of the Republic of Uzbekistan with utilization of 29.7 million euro “LandesbankBerlin AG” credit line, Germany.

All manufacturing equipment is supplied, credit funds are almost totally used. It is necessary to complete chief installation works and start adjustment and alignment works, supply the enterprise with production tools, draw plate and motor transport etc.

As a result of decrease and delay of funding in national currency, construction of the factory is not completed; the factory is not placed in operation.

New investment for completion of construction of “Uzglaszayden” factory, producing technical glass fibers will enable to create a large-scale production of salable products.

Investment projects

Investment projects, assuming attraction of foreign direct investments

Investment projects, assuming sale of shares

Enterprises for sale at auction tenders as property complexes