Investment Opportunity in Cable and Wire Production
"Explore the lucrative business model for cable and wire production in Uzbekistan, offering incentives, tax breaks, and access to domestic and international markets. Benefit from competitive operating costs and trade agreements for successful investment."
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Presentation Transcript
Ministry of Investment, Industry and Trade of the Republic of Uzbekistan Production of cables and wires in Uzbekistan Project overview Business model: production complex with a capacity of 15 thsd tons of cables per year Project scope Financing Production of cables and wires 20 mln USD Production process for cables Incentives Infrastructure development at state cost* (project cost exceeding 15 mln USD) The extrusion process Copper melting Drawing section Straining process Across the Republic, 27 FEZs offer tax breaks on land, property, water and CIT. (CIT - applied for investments over 3 mln USD) Project description Domestic market Existing 5 neighbor markets Russia, Europe, Middle East markets 5 years if investment is between 3 5 mln USD 3 years if investment is between 0,3 3 mln USD 2 production lines Exemption from taxes Capability to produce various sizes and standards ~200 employees 7 years if investment is between 5 10 mln USD 10 years if investment is over 10 mln USD Production and trade volume of cables and wires (2024) Consumption (including CA region) Production Export Import Infrastructure Gas 12 cents/m 65 USD mln 1,5 USD bln 349 USD mln 794 USD mln Electricity 7 cents/kWh Water 20 cents/m
Ministry of Investment, Industry and Trade of the Republic of Uzbekistan We invite to invest in production of cables and wires in Uzbekistan Project overview Competition: Uzbekistan offers highly competitive structure of operating costs for manufacturing of finished goods internationally Trade agreements CIS Agreement more integrated and open market CIS countries. Free Trade creates GSP+ allows to export to EU at reduced zero tariff 6 200 products. agreement or for with Average gas cost, US cents per m3 Average wage, USD ths per month Uzbekistan cable products export, USD mln Top-7 cable products exporters, USD bln Location 4,6 3 n 2,1 83 Italy 29,5 8 1,1 55 China Tashkent region 14,1 0 1,0 28 Mexico 0,1 35 0,85 5 Kazakhstan 3,2 70 1,0 59 Turkey 9,8 6 3,9 130 Germany Russia Tashkent region Size 15 250 km 0,5 40 1,2 35 Population 3 million Uzbekistan 0,35 4 12 Availability of labor in electrical industry Local cable product manufacturers can benefit from: Higher education institutions: 24 - 4% discount for copper raw material (cathode) based on LME price - 90 days installment payment scheme for internal copper fabrication - Growing residential construction sector Faculties of higher education: 32 - Availability of skilled & unskilled labor - Building on existing infrastructure and distribution networks Number of graduates: 4 000 - Incentives: Free economic zones offer tax breaks on land, CIT, water.
Ministry of Investment, Industry and Trade of the Republic of Uzbekistan On the strategic international logistics corridor Sankt-Peterburg Tallin Latvia Riga Moscow Klaipeda Hamburg Minsk Berlin Brest Povorina Kyiv Essen Lviv Kandiagash Paris Volgograd Chop Aktogay Ulan-Bator Saksaulskaya Astraxan Beyney Bayangal-Mangal Osh Kashgar Malatya Mersin Mazar-i- Sharif Saraxa Xirat Afghanistan Peshavar Iran Pakistan Bandar-e- Abbas Chakhbahar Karachi
Ministry of Investment, Industry and Trade of the Republic of Uzbekistan Excellent air connectivity from Tashkent and other Uzbek airports New York A visa-free policy for tourists from 90 countries Diverse range of 59 carriers in Uzbekistan s airport 11 airports across the Country, the main airports are Tashkent, Samarkand and Bukhara
