Uzbekistan excludes foreigners from sale

Uzbekistan excludes foreigners from sale
Published: 12 April 2005

The government of Uzbekistan will not allow foreign investors to participate in the privatization of cement producer Kyzylkumtsement, the country’s biggest cement plant, a source in the State Property Committee told Interfax.  The 30 per cent share package that had been reserved for sale to foreign investors will remain in state ownership, enabling the state to retain control over the plant, he said. 

Kyzylkumtsement will be the only remaining company in the cement industry controlled by the state. The cement industry in Uzbekistan was one in which privatization involving foreign investors has been most successful.  In the past 18 months we have sold the controlling of blocking share packages in three of the four largest cement plants to foreign investors, he said. 

The privatization of the country’s second largest cement plant - Akhangarantsement, will continue this year with a 25 per cent share package to be sold to foreign investors. 

Kyzylkumtsement was opened in 1977 and has capacity to produce 3.08Mt of cement a year. The state owns 64 per cent, employees own 26 per cent, Spain’s Nevocat owns 4.04 per cent, and other small shareholders own 5.96 per cent.