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Creation of paper production

Investment proposal

Name of the project

Creation of paper production in Ferghana

Main goals of project

The mission of the Company is to ensure the uninterrupted production of a wide range of quality paper products, in accordance with the requirements of ISO 9001 and to meet the country’s needs with paper products at affordable prices, to reduce dependence on paper products imports, as well as export products to near and far abroad.

        Project Objectives:

1. Perhaps a quick exit to the planned capacity.

2. The use of advanced technologies and equipment.

3. Production of quality products and the establishment of reasonable prices for it.

4. The conquest and preservation of most of the regional consumer market.

5. Conducting sound production and marketing policies.

6. Timely updating of capacities and assortment of products.

7. Launch of own developments in production, creation and maintenance of original brands.

8. Development and expansion of the Enterprise to economically sound scales.

9. Entering foreign markets.

10. Providing its owners with income.

Sphere /industry

Paper production

Implementation of schedule project






























Construction of a roll paper workshop and








 auxiliary production








 General contractor










Equipment purchase


















Installation, commissioning,









start-up equipment









Starting of production


















Location of the project

Fergana city, Uzbekistan


Information about participants of the project:

– initiator

Alisher Mirzakhalilovich Madrakhimov

– co-executor (the lead sectorial of Ministry/authority/Department)


– creditor


Total costs of project

$ 4 600 000

Prospective source of financing:

– own funds


– loans of commercial banks


– the required volume of direct foreign investments

$ 4 600 000

Composition of main costs



4Q 2019г.


1Q 2020г.


2Q 2020г.

Allocation of land







Architectural concept development







Development of building documentation







Construction of workshop No. 1







Building auxiliary production







Getting all kinds of permissions,














Payment for equipment







Payment for vehicles and auxiliary














Shipping costs of the main














Installation, commissioning, start-up














Purchase of fuels and lubricants







Purchase of office equipment, furniture and stationery




























Projected profitability


Projected payback period


Cash flows


Enterprise operating income over a five-year period ($ thousand):






Enterprise operating expenses over a five-year period ($ thousand):



According to the “Regulation on the procedure for applying tax incentives for enterprises attracting direct private foreign investment” dated August 9, 2016, the company is exempted from taxes for a period of 5 years.

Characteristics of the planned production


Production is based on the production of paper from stone. The basis of paper made of stone is calcium carbonate. Calcium carbonate is obtained from minerals, which are most often thrown out during the extraction of raw materials used for the construction industry. That is, for the production of paper, limestone, marble waste and so on are used. The rock is crushed until fine chalk dust is obtained. HDPE, a non-toxic synthetic resin — high-density polyethylene — is added to bind dust particles. This substance contains 80% calcium carbonate and 20% HDPE. At the exit from it turns out a snow-white, smooth and soft paper, resistant to water and abrasion. It has no acids and chlorine, it is completely safe for the environment. This paper is water resistant, grease resistant and very strong. On it, as well as on plain paper, you can write with a ballpoint pen, fountain pen, pencil, felt-tip pen, marker, draw with various paints. If you destroy mineral paper in garbage processing plants, it will not emit toxic substances into the atmosphere when burning.

In the first year, the range will be represented only by roll paper. An increase in the range of products requires an increase in the cost of the project. With the growth of the company’s profitability, the range of products will increase.

         Uzbekistan has large reserves of limestone and marble, which will serve as the main raw material. The second raw material product is polyethylene, produced in a number of gas processing plants in Uzbekistan.

Capacity of project/productivity

3600 tons of roll paper per year.

Contribution to the project by the initiator


Current status of project


Information about the initiator of the project

Full name of the enterprises

 Requisites, email, contacts

Uzbekistan, Ferghana city, Al-Fargany Str. 4/22.

e-mail: alishertoday@gmail.com

phone.: +998941342527.

Foundation date of the enterprise

Statutory fund

Structure of founders and distribution of shares

1. The initiator of the project.

2. Investors.

Distribution of shares: 90% to the investor and 10% to the project initiator until the full return of the investment amount. Further, the shares are distributed equally 50%: 50%.

Information about the founders

Full name

Alisher Mirzakhalilovich Madrakhimov

Contact number


Email address


Contact of the performer from the MIFT

Full name




Contact number


Email address


General information

Number and types of jobs created

1. Director

2. Production manager – 1 person.

3. Accountant – 2 people.

4. Laboratory assistant – 1 person.

5. The driver of heavy vehicles – 1 person.

6. The driver of the forklift and electric cars – 1 person.

7. Workers – 4 people.

8. Locksmiths – 2 people

9. Security guards – 4 people.

Environmental impact statement (project EIS), which includes expected types and volumes of waste, places of their utilization

During production, no harmful substances are released into the atmosphere and toxic water is not emitted, since water is not used in the production.

Information about the land plot for the construction of the enterprise

Planned purchase of land within the city of Ferghana. The building area will be about 5 thousand square meters, including: 45% – production area, 40% – technical area and storage facilities, and 15% non-production area.

Existing infrastructure

The required infrastructure

Upcoming construction and installation works

The term of construction and installation works is 6 months from the start of financing. The amount of work in the amount of $ 960 thousand.

Designed-estimated documentation

Design estimates will be developed within 15 days from the start of financing.

Power requirement (kWh), installed capacity (kWh or megawatt hour)

200 thousand sq / h per year.

Demand for water (cub/m)


Gas demand (cu/m)

12 thousand cubic meters in year.

Market analysis, productions definition (works, services),marketing researches

Type of product

Roll paper

Annual production (ton. year)

3600 tons.


Prospective markets sales and their shares:



100 %

Costs of products

$ 1200 per ton.

Demand for raw materials (per year)

2700 tons of lime and 660 tons of HDPE.

Provision of raw materials

Local raw materials

Market volume

100 thousand tons.

Expected market share

50 thousand tons.

Main competitors


Main competitive advantage

Domestic raw material base, high quality of finished products (strength, water resistance, grease resistance)

Main target groups of consumers

Advertising agencies and firms, publishing organizations, manufacturers of building materials, consumers of various paper packaging.

The structure of sales according to target groups of consumers

The sales structure will depend on the needs of the target customers.

Pricing strategy

The price of products destined for export will vary between $ 1200 – $ 1500 per ton.

Cost structure of the final product

The structure of the cost of the final product will consist of the cost of the raw materials spent on the manufacture of products, transportation, utilities, wages, depreciation and direct business expenses.

Availability of patents, licenses, certificates in accordance with the current legislation

Licenses and certificates will be obtained within one month from the start of project financing.

The presence of a formed database of potential customers with a confirmed willingness to purchase products

All countries of Central Asia and CIS countries.

Presence of marketing research

80 %

Presentation component of the project

Video materials have been prepared for the presentation of the project.

Additional information


Project risks

The main risks of the project may be force majeure circumstances.

Production technology and parameters of main equipment

Depends on the investor’s preferences

Type of equipment

Stone roll paper production line.

Country of origin



3600 tons per year.


$ 2 million 500 thousand

Energy consumption

200 thousand sq / h per year.

Installed capacity

Overall size of equipment

25m x 5m x 5m.

Weight of main equipment

70 tons.

Node of main equipment (lines)

Number of working hours per year

2880 hours per year per worker.

Duty cycle

Two-shift or three-shift.

Periodicity of the planned –warning repair (design and preparation works)

Once a year.

Number of people involved in the production process and their functions

Director – general management, production manager – production process management, 6 workers – operators, fitters, drivers, laboratory assistant – product quality control.


(Show schematically)

Stage of production:

  1. Grinding rock to powder form.
  2. The combination of stone powder and polyethylene and obtaining granules.
  3. High temperature effect on granules and obtaining a liquid mass.
  4. The passage of the liquid mass through the line and by gradual cooling, obtaining paper raw materials.
  5. The passage of paper raw materials through numerous shafts to give the paper the desired shape, thickness and quality.
  6. The receipt of the final product roll paper of the established sample.