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Creation of modern foundry production which meets the standards of international requirements

Investment proposal
  

Name of project

Creation of modern foundry production which meets the standards of international requirements

Purpose of project

Deepening the localization and cost reduction of manufactured agricultural machines, manufacture of import-substituting products

Sphere/field

Agricultural machinery

Project implementation schedule

Stage 1 – 2019;

Stage 2 – 3rd quarter of 2020

Place of project implementation

Mirzo Ulugbek district, Tashkent, Uzbekistan

Data about project participants:

– initiator

JSC “Tashkent plant of agricultural machinery”;

LLC “Invest Agro”

– associate contractor (supervisory body/ministry/ department)

JSC ”Uzagrotechsanoatholding”

– creditor

is being defined

Total cost of the project

44,3 mln. USD

Expected sources of funding:

– internal funds

44,3 mln. USD

– credits

 

– demanded scope of foreign direct investment

 

Composition of main costs (preliminary)

Major technological equipment, accessory equipment, construction and assembly works

Construction and assembly operations

10,0 mln. USD  

Price of machines, equipment, vehicles, etc.  

29,5 mln. USD 

Financial charges

2,4 mln. USD 

Miscellaneous expenses

2,4 mln. USD 

Forecasted payability

16,4%

Forecasted recoupment period

4 year 2 month 

Money flows

 

Characteristics of planned production release

Iron casting

Rated capacity/ productivity

47,0 thousand tons of casting

Investment in project by initiator

44,3 mln. USD

Current status of project

The terms of reference is prepared for the development of an Environmental Impact Statement, a feasibility study and design and estimate documentation (DED). The competitive selection of developers of the feasibility study, design and estimate documentation and the EIS will be carried out after determining the preliminary cost of the process equipment, the project customer from the Uzbek side and funding sources.

 

Confidentiality Agreements (NDA) have been concluded with the companies KUTTNER SAVELLI (Italy, core molding equipment) and EIRICH (Germany, sand preparation equipment), and on December 24, 2018. A Confidentiality Agreement (NDA) has been concluded with HWS (Germany, automated molding lines).

February 4 and 7 a working meeting was organized in Germany with representatives of the following companies: HEINRICH WAGNER SINTO (HWS) (Germany) – molding line (automatic), sand recirculation equipment; EIRICH Maschinentechnik (Germany) – equipment for the preparation of molding sand; INDUCTOTHERM (the USA, Turkey) – induction casting furnaces (2×12 tons); LAEMPE (Germany) – equipment for core-mold production; GENERAL KINEMATICS (Germany) – vibration installation of casting from sand; AGTOS (Germany) – equipment for bead blasting treatment.

 

In the course of meeting, the totalitarian planning of the foundry was agreed upon, a list of necessary equipment was indicated.

The conclusion of the Center for state sanitary and epidemiological supervision of the city of Tashkent on the compliance of the site allocated for the foundry construction with the approved sanitary standards (Ref. No.06-11 b/01 dated January 8, 2019), as well as permission to implement the project from the State security service of the President of the Republic of Uzbekistan (Ref. No.1/83, dated January 29, 2019).

 

The production technology has been developed, the design of the production line has been developed, the design of buildings and structures is being carried out. The development of the transfer line is underway. The development of a project business plan has begun to identify sources of funding.

 

In the first half of April this year. suppliers visited Tashkent to agree on the specifications and terms of equipment supply contracts. Financing issues are currently being negotiated.

 

Data about project initiator
  

Full name of enterprise

Joint-stock company “Tashkent plant of agricultural machinery”

Requisites, address, contact numbers

100142, Buyuk ipak yuli street 434, Mirzo Ulugbek district, Tashkent, Uzbekistan.

Tel: +99871 2640812;

Email: info@tzst.uz

Date of enterprise establishment

September 12, 2014

Authorized fund

110,6 mlrd. USD

Founding members and distribution of shares

JSC “Uzagrotechsanoatholding” – 100%

Data about founder members
 

Name

JSC “Uzagrotechsanoatholding”

Date of establishment

November 17, 2016

Contact number

+99871 2126633

Email address

info@uzatsx.uz

Performers’ data on the part of Ministry of investment and foreign trade of the Republic of Uzbekistan
 

Full name

 

Position

 

Contact number

 

Email address

 

General Information

Quantity and types of created work positions

250 units

Project impact on environment (Environmental impact statement of project), including assumed types and waste volume, area for their utilization

by European standards

Information about the area for construction of the enterprise

is being defined

Current infrastructure

under reconstruction

Demanded  infrastructure

defined

Upcoming  building and assembly works

is being defined

Design specifications and estimates

development has begun

Demand in electric energy (kW/h), installed power (kW/h or mW/h)

up to  95,8mln. kW/hour (preliminary)

Water requirements (Cubic/m)

is being defined

Gas requirements (Cubic/m)

1,8 mln. Cubic meter (preliminary)

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

Types of products

Box shaped parts of transmission, balancing weights of tractors, box shaped parts of front and rear axle of combines, truck transports.

Annual output

31,0 mln. USD

Estimated marketing outlets and their shares:

Internal

26,1 mln. USD

Export

  4,9 mln. USD

Cost of products

is being defined

Demand for raw materials (annual)

is being defined

Raw-material endowment

is being defined

Market volume

is being defined

Expected market share

internal – 84%;  external – 16%

Main competitors

is being defined

Main competitive advantages

is being defined

Main target groups of suppliers

is being defined

Sales structure on target groups of suppliers

is being defined

Price strategy

is being defined

Price structure of final product  

is being defined

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

not available

Availability of a formed base of potential customers with a confirmed willingness to purchase products

is being defined

Availability of marketing research

is being defined

Presentation component of the project

available

Additional information

is being defined

Project risks

is being defined

Manufacturing techniques and parameters of main equipment

Type of equipment

Molding lines (automatic), sand recirculation equipment; equipment for setting molding sand; induction casting furnace; equipment for core-mold production; sand casting separation unit; equipment for bead blasting treatment of casting.

Country of origin

Germany, the USA, Turkey

Productivity

is being defined

Price

24,3 mln. USD (preliminary)

Energy usage

is being defined

Installed capacity

is being defined

Overall dimensions of equipment

is being defined

Weight of main equipment

is being defined

Main equipment units (lines)

is being defined

Number of working hours per year

is being defined

Work cycle

is being defined

Periodicity of preventive maintenance works

is being defined

Number of people, involved in the production process and their function

is being defined

Note: the parameters will be finalized when the feasibility study of project is confirmed.