13/01/11 - REVIEW OF KEY BUSINESS EVENTS (January 11, 2011)

Дата публикации: Jan 19, 2012 10:15:50 PM

“Uzmetkombinat” has increased steel production

As reported by “podrobno.uz”, «Uzmetkombinat" has produced 717.4 ths tons of steel, as well as commercial output worth 632.5 bln UZS with a year-on-year growth rate of 1.9%. During 2010 the company secured export contracts for the supply of more than 354 ths tons of steel, and over the

9 months of 2010 the company has delivered 271.5 tons of steel worth 128.3 mln USD. In 2008 the company had exported 255 000 tons of high-quality steel, and in 2009 – 293 900 tons. The main importers of these products are Kazakhstan, Iran, Afghanistan, Russia and Azerbaijan.

At the end of 2010, the company has almost completed the project to modernize the obsolete equipment in the steel smelting and rolling departments worth about 30 mln USD. The company has upgraded electrical systems and automatic control systems of the mill “300” used at rolling department #2. For the production of copper and brass foil, the company has installed the fundamental equipments, as well as they were tested and put into operation. As part of its modernization program in 2010, the company has implemented 4 projects worth about 56 mln USD.

In 2011, the company plans finish the replacement process of the obsolete unit with a modern air separation unit, which would reduce the duration of metal smelting from 60 to 55 minutes and would result in savings of about 3.8 mln USD. This unit will meet full needs of the company in oxygen, liquid oxygen, nitrogen and argon. The latter will be used for steel blowing, resulting in higher quality steel products.

Presently, the company together with a number of foreign investors is considering the development of “Dautash” deposit and organizing ferroalloy production on its basis. The project implementation is scheduled for 2012-1015, with an estimated cost of 65 mln USD. After starting the production, the company will be able to produce up to 12 000 tons of

ferroalloys. Future plans also include setting up production of not less than 50 000 tons of wire rod per year at the “300” mill of the rolling department #2, including installation of a wire block. The project will cost about 13 mln USD.

137.2 bln UZS to develop entrepreneurial activities

The Decree on the forecast of macroeconomic indicators and parameters of the State Budget for 2011 provides for the release of 83.6 mln USD for entrepreneurial activities, says IA “REGNUM”.

From January 1, 2011 the lowest bracket of income tax rate for individuals was reduced from 6 to 5 minimum wages, with the tax rate under this bracket being reduced from 11% to 10%. Over the past 5 years, the unified tax rate was reduced by 6 percentage points – from 13% in 2005 down to 7% in 2010. In 2011, the unified tax rate for micro and small enterprises (with the exception of retail trade and food catering companies) was reduced from 7% to 6%. The measures to lower tax burden will cost the state budget 137.2 bln UZS, which can be used for the

development of entrepreneurial activities.

Car manufacturing industry to expand its production

It is expected that by 2015 the annual production of cars will increase by 1.5 times up to 260 000 units, and bus and truck production – by 1.3 times up to 3 200 units, reports “podrobno.uz”.

The plan is to produce 225 000 cars, 2 700 buses and trucks in 2011; in 2012 these figures are expected to go up to 235 000 cars and 2 900 buses and trucks, in 2013 – up to 245 000 and 3 000, in 2014 – up to 250 000 and 3 100 and in 2015 – up to 260 000 and 3 000.

Increased production of cars will be achieved by increasing the sales of Spark; as well as the start of production of Lacetti with dual fuel engine – petrol and compressed gas in 2011, and a new model GSVEM in 2012.

A significant role might be played by newly set up Joint Venture to produce Mercedes-Benz chassis-based buses -“MB Central Asia”, which plans to produce up to 600 buses of various types per year. In additional, one can expect revitalization of Samarkand Automobile Plant, which is currently developing projects of two new buses. The first will be built on the basis of Isuzu “700P” chassis, and the second one will be a modification of LE60 bus. In 2010, the plant planned to produce 1 372 units of machinery, including 533 trucks and 839 buses. In 2011, the plant plans to double its production up to 2 650 units, including 850 trucks and 1800 buses.

Commentaries of trading results at RSE “Toshkent”

Total sales volume of the exchange on January 11, 2011 was equal to 106 mln UZS. There was executed 3

transactions involving OJSC “Shodlik Group”, OJSC “Bekabadcement” and IF “Kamalak” shares. The bulk of the trading volume was provided by a transaction with OJSC “Shodlik Group” shares, as 2.35 shares of the company were sold at their par value of 1 mln UZS each. 0.74 shares of OJSC “Bekabadcement” were sold for hard currency, the selling price of 9 USD per share.

UCI-Core and UCI-Broad indexes remained at the level of 1 055.6 points and 1 093.10 points, respectively.