Singapore-based petrochemicals group Indorama plans to invest more than €437m in a joint venture project to construct a 400,000 tpa polyethylene production plant in Uzbekistan.
The €874m scheme, part of an Uzbekistan government plan to upgrade the country’s Mubarek gas processing complex by 2015, is being carried out jointly by Indorama and the national gas company Uzbekneftegaz.
Uzbekneftegaz is contributing funding of almost €110m with the Central Asian state’s Fund for Reconstruction and Development loaning the remainder of the cost.
Commissioned in 1971, the original Mubarek gas complex can process up to 30 billion cubic metres of gas. The PE and other complex products are due to be sold, not only in Uzbekistan but also abroad.
Indorama is already investing in the country with a €40m project to set up textiles production at the incomplete Kokand Textile Combine. JV Indorama Kokand Textiles is due to produce up to 20,000 tpa of cotton yarn by 2013.
The polyethylene scheme is one part of a major Uzbek government programme designed to enhance and develop polymers production in the country. Last year the government signed a bilateral agreement with South Korea resulting in a joint project to construct a petrochemicals and polyolefins complex there.
Other international projects include plans for two PE and polypropylene pipe extruding plants in Uzbekistan’s Navoi region and an Uzbek-South Korean joint venture car component moulding business, already up and running, making automotive cables.
Indorama signs Uzbek polyethylene deal