Monday, November 16, 2009

KUNGRAD Soda Ash plant

KUNGRAD Soda Ash plant

After 4 year construction period starting in 2002 the Kungrad Soda Ash plant was commissioned in August 2006.

The plant, a joint venture between Chinese group China International Trust & Investment Company International Cooperation Company and Uzbekistan's UzKimyoSanoat (a major Uzbek chemical industry conglomerate) cost US$100 million to build and occupies 60 hectares, The plant has a projected production capacity of 100,000 tonnes of soda ash yearly.

Citic Pacific Ltd carried out the design and turn-key construction of the technological side of the plant (cost US$32.3 million) funded by a loan of the Industrial and Commercial Bank of China (90% of the contract cost) with the insurance provided by the Chinese Export and Credit Insurance Corporation, and a loan of the UzPromStroyBank (Uzbek Industrial Construction Bank, 10% of the contract cost) guaranteed by the Uzbek government.

General construction works were performed by local construction companies for UzKimyoSanoat.

The production of Kungrad Soda Plant covers domestic demand and export sales of soda ash, hydrate of sodium, and table salt.

Uzbekistan's current domestic demand for soda ash is 60,000-70,000 tonnes yearly.

The main consumers being the household chemical industry and the producers of construction materials and glass makers.

The resource base for Kungrad Soda Plant is the Barsakelmes salt deposit (explored reserves estimated at 131 million tonnes of common salt containing 97% of NaCl) and the Jamansay limestone deposit (explored reserves estimated at 70 million tonnes) both located in the north of Karakalpakstan near the industrial city of Kungrad.

They are currently producing 240-250 tons a day of high-quality product (equivalent to 85,000 tons of soda a year). The plant employs 1,300 people (making it the largest industrial employer in the Republic). Among the main buyers of the plant's products are the companies Quartz, PharmGlass, Gazalkent Oyna, Uzqurulishmateriallari, Uzkimyosanoat and Uzbekneftegaz.

It is on target this year (2009) to export over 36,000 tons of soda to overseas buyers in Russia, Kazakhstan, Kyrgyzstan and Turkmenistan. Clients to date have included the Bryansk Chemical Company (Russia), Maylisuu Electric Lamp Plant (Kyrgyzstan), Power Global Engineering (Kazakhstan) and Letreh Invest (Turkmenistan).